After studying the content within this chapter, you will:

1. Understand the role played by the global monetary system in determining exchange rates.
2. Be familiar with the historical development of the modern global monetary system.
3. Appreciate the differences between a fixed and a floating exchange rate system.
4. Understand why the world's fixed exchange rate regime collapsed in the 1970s.
5. Understand the arguments for and against fixed and floating exchange systems.
6. Be familiar with the role played by the International Monetary Fund and the World Bank in the global monetary system.
7. Understand the implications of the global monetary system for currency management and business strategy.