Intro to International Business
Exchange rate volatility refers to the degree of fluctuation in the value of one currency compared to another over a specific period of time. It is important because it affects international trade, investment decisions, and overall economic stability. High volatility can create uncertainty for businesses engaged in foreign transactions, leading them to implement strategies for managing foreign exchange exposure and mitigating risk.
congrats on reading the definition of Exchange Rate Volatility. now let's actually learn it.