December 2015
Intermediate to advanced
313 pages
16h 2m
English
Content preview from International Business, 2nd Edition by Pearson
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138 International Business
Target-zone Arrangement
The target-zone arrangement is virtually a joint
float system cooperatively arranged by a group of
nations sharing some common interests and goals.
Under a target-zone arrangement, countries adjust
their national economic policies to maintain their
exchange rates within a specific margin around
agreed-upon, fixed central exchange rates. Such
an arrangement exists for the major European cur-
rencies participating in the EMS. Members of the
European Union have a cooperative agreement to
maintain their currencies within a set range against
other members of their group. The EMS is, essentially a pe ...
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