If there is a greater degree of economic integration between markets in the home country and the base country:
A) the home country will benefit to a greater degree by fixing its exchange rate with the base country.
B) efficiency will be reduced with fixed exchange rates.
C) flexible exchange rates will result in GDP stability.
D) the volume of transactions will be too low to justify an elaborate exchange rate policy.
Ans: A) the home country will benefit to a greater degree by fixing its exchange rate with the base country.
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