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Essay text:
Multinational companies dominate the international economy. The integration of the financial markets and the internet technology give access to investments in foreign countries.
As investors increasingly buy assets in a high yield foreign currency the exchange rates in this specific currency rises. This leads to a reduction in exported and an increase in imported goods. The balance is easily disturbed and governments find it increasingly difficult to control rising inflation. The economic relations between countries are very complex as each country has its monetary policy. Japan for example exerts a strong control on the exchange rates due to a high export percentage, whereas the U...
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