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What effects does foreign exchange rate fluctuations have on importers?
Wiki User
∙ 15y ago
If the exchange rate for a country goes up then the trading country will have to pay more to purchase goods from that country. If the exchange rate goes down then the trading country will have to pay less to purchase goods from that country.
Conversely, if the exchange rate goes up for a country then it has strong purchasing power in that it can purchase goods from the trading country at a cheaper price. If the exchange rate goes down then it will have to pay more to purchase goods from their trading partners.
For example, currently, because the UK has a strong pound against the US dollar, it makes our exports expensive to purchase by the US; however, we are able to purchase their goods relatively cheaply (property, holidays etc); conversely, the pound has weakened against the Euro thereby making our European holidays more expensive; however it makes it cheaper for the Europeans to come to the UK.
Wiki User
∙ 15y ago
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What are the effects of foreign exchange fluctuations on importers in the international market?
Changes in prices of goods or products sold mean changes in pricing strategy or sufficient markups to handle variability??
What are some of the main causes for fluctuations in foreign currency exchange rates?
Some of the main causes for fluctuations in foreign currency exchange rates are differentials in inflation and differentials in interest rates. Others include currency-account deficits and public debt.
How does a country balance of payments affect the value of its currency?
can cause fluctuations in the exchange rate between its currency and foreign currencies.
Which foreign exchange system has the highest foreign exchange rate?
The Zimbabwean has the highest foreign exchange rate.
What are foreign exchange rates?
Foreign exchange rates are currency exchange value of other countries.
What are the effects of foreign exchange fluctuations on importers in the international market?
Changes in prices of goods or products sold mean changes in pricing strategy or sufficient markups to handle variability??
You are working in a company which has been dealing in foreign exchange What if your company has seen the effects of recent exchange fluctuations and its impact on business What if your managing direc?
join the word and go to the lin
Causes of foreign exchange fluctuations?
changes in the puchasing power of one currency
What are some of the main causes for fluctuations in foreign currency exchange rates?
Some of the main causes for fluctuations in foreign currency exchange rates are differentials in inflation and differentials in interest rates. Others include currency-account deficits and public debt.
What is foreign exchange trading?
Buying and selling foreign currencies. Speculators take advantage of fluctuations in FX prices to make a profit.
How does a country balance of payments affect the value of its currency?
can cause fluctuations in the exchange rate between its currency and foreign currencies.
What is a current issue involving foreign exchange?
A current issue involving foreign exchange is the impact of fluctuating exchange rates on international trade and investment. Fluctuations in exchange rates can affect the cost of imports and exports, making it challenging for businesses to plan and forecast their financials. Additionally, exchange rate volatility can create uncertainties for investors, affecting their decisions regarding foreign investment.
Which foreign exchange system has the highest foreign exchange rate?
The Zimbabwean has the highest foreign exchange rate.
What do you mean by foreign exchange?
Foreign Exchange is Exchange between two currency.
Define indivdual culture variables with examples?
if i have working in a companay which has been dealing in foreign exchange. This company has seen the effects of recent exchange fluctuations and its impact on business. YOur managing director hanasked for your advice ub tge natter abd requested for a brief report on the subject. i have to write such report. personal ethics are shaped by five major influences. Describe each in detail.
What has the author Ariel T Burstein written?
Ariel T. Burstein has written: 'Large devaluations and the real exchange rate' -- subject(s): Devaluation of currency, Foreign exchange rates 'Investment prices and exchange rates' -- subject(s): Foreign exchange rates, Investment analysis, Investments, Prices, Stocks 'Factor prices and international trade' 'Distribution costs and real exchange rate dynamics during exchange-rate-based-stabilizations' -- subject(s): Foreign exchange rates, Price maintenance 'Trade liberalization and firm dynamics' 'The importance of nontradable goods' prices in cyclical real exchange rate fluctuations' -- subject(s): Foreign exchange rates, Mathematical models, Prices 'Why are rates of inflation so low after large devaluations?' -- subject(s): Devaluation of currency, Econometric models, Foreign exchange rates, Inflation (Finance)
What is operating exposure?
Operating exposure is the degree to which a company's operating income (earnings before interest and taxes) is affected by changes in foreign exchange rates. It measures the impact of currency fluctuations on a company's financial performance due to changes in sales, costs, or both in different currencies. Operating exposure is a measure of how vulnerable a company is to fluctuations in exchange rates impacting its bottom line.
