Some have voiced concerned about the US dollar being the unit of reference for much of international trade. List 3 consequences of the US dollar losing this unique status and being replaced by a basket of 4 currencies.
Assume the company for which you work is considering investing directly in Brazil by building a plant in Rio. You have worked in that project for 2 years and just as the decision to go ahead is to be made, the Real (Brazil’s currency) suddenly devalues by 20 percent. List 2 positive and 2 negative consequences of the devaluation.