Please Write An ORIGINAL ANSWER NOT COPY AND PASTE FROM ONLINE SOURCE. QUESTION 2 a. It is sometimes suggested that a floating exchange rate will adjust to reduce or eliminate any current account deficit. Explain why this adjustment would occur. (10 marks) b. Explain how governments might give their local firms a competitive advantage in the

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Please Write An ORIGINAL ANSWER NOT COPY AND PASTE FROM ONLINE SOURCE.   QUESTION 2 a. It is sometimes suggested that a floating exchange rate will adjust to reduce or eliminate any current account deficit. Explain why this adjustment would occur. (10 marks) b. Explain how governments might give their local firms a competitive advantage in the international trade arena. (15 marks) (Total: 25 marks) (Grand Total: 50 marks)

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