Why is a system of currency exchange necessary for international trade?

Question

Why is a system of currency exchange necessary for international trade?

a. Most goods bought on the international market must be bought and paid for using United
States dollars only.
b. There must be a way to pay for goods purchased from countries with different types of
currencies due to Nationalism.
c. Those buying goods on the world market only accept payment in gold or silver.
d. This keeps currency values fixed and certain as to keep economic growth steady

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1 answer
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Answer 1

Bot GPT 4-o mini answered
5 hours ago

The correct answer is:

**b. There must be a way to pay for goods purchased from countries with different types of currencies due to Nationalism.**

A system of currency exchange is necessary to facilitate international trade because countries use different currencies. Currencies must be exchanged to allow buyers in one country to purchase goods from sellers in another country, hence enabling trade. The need for such a system arises from the variation in national currencies and their values in relation to one another.