Question

Why are currency exchange systems important for international trade?

Group of answer choices

They make it more difficult for countries to impose tariffs on foreign goods.

They make it more difficult for smugglers to sell foreign goods.

They make it easier for countries with different kinds of money to trade with each other.

They make it easier for people who speak different languages to trade with each other.

Answer 1

The reason why we need a system of currency exchange in order to conduct international trade is because different countries use different types of currency. They do so because national sovereignty allows each nation to establish its own currency. However, we need a system to pay for goods that are purchased from other countries. This is why the currency exchange system allows us to conduct international trade

Step-by-step explanation: