Explain how changes in the exchange rate would affect profitability for exports from a different country to the United States.

OVERVIEW
Write a 250–500 word analysis in which you examine the issue of currency exchange and the risks associated with changes in the exchange rate.

Fluctuations in currency exchange rates can have significant effects on business costs, asset values, and profitability. Therefore, it is important for managers to be familiar with exchange rates and currency considerations and to understand the risks involved in currency exchange.

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

• Competency 4: Assess the feasibility of business operation in other countries.

o Analyze the exchange-rate-based value of selling goods in the United States exported from a different country.

o Explain how changes in the exchange rate would affect profitability for exports from a different country to the United States.

o Identify risks related to changes in the exchange rate from a management perspective.

Explain how changes in the exchange rate would affect profitability for exports from a different country to the United States.
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