You own a firm that engages in overseas business.â Recently, the exchange rate became much higher for yourâ country's currency. How would the new exchange rate most likely affect yourâ sales?
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The new exchange rate would likely have a negative effect on sales. Since the exchange rate is higher, it will cost more for customers to purchase products from overseas, making the prices of the goods more expensive. This can result in customers opting out of making purchases from the firm, resulting in decreased sales.