Exchange rates impact global business operations from "summary" of Macroeconomics for Business by Lawrence S. Davidson,Andreas Hauskrecht,Jürgen von Hagen
Exchange rates play a crucial role in the global business environment. They are the prices at which one country's currency can be exchanged for another country's currency. Fluctuations in exchange rates can have significant impacts on businesses that operate internationally. When a country's currency strengthens or weakens against another currency, it affects the competitiveness of its exports and imports. For businesses that export goods and services, a stronger domestic currency can make their products more expensive for foreign buyers. This can lead to a decrease in demand for their products, ultimately impacting their sales and revenues. On the other hand, a weaker domestic currency can make exports more competitive in foreign markets, potentially increasing...
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