The study looked at how changes in exchange rates affect trade between European Union countries from 2002 to 2017. They used a model to analyze the impact of exchange rate volatility on trade flows, considering factors like good governance. The results showed that exchange rate fluctuations have a negative effect on trade, with variations depending on the region or type of goods being traded. Additionally, the study found that governance indicators also play a role, with most showing a negative impact on trade flows.