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The Relationships between Exchange Rate and Exports
An international market is a geographical market that extends international borders of an
organization’s country of origin. A firm, to the expansion of its operations, is a unique legal body
from its owners such as a corporation, is commonly a citizen of the country where it is managed.
For instance, IBM was started in the United States. Therefore, any geographical location foreign
to the territorial boundaries of USA where IBM was carried out its business is IBM’s global
On the other hand, a market is the total of all the sellers and buyers in a region or area
under scrutiny. The location may be cities, states, territories, or countries. The cost, value, and
price of commodities traded are as per forces of demand and supply in the market. The market
may be a physical body, or it may be an online market. It may also be domestic or global,
complete or incomplete.
The first association between exchange rate and global trade is in a way that any changes
in the exchange rates impact the value of imports and exports. When it comes to exchanging rate
and global trade, a weak currency may influence the type of goods and quantity of commodities
that a country may be able to buy. Such a difference in commercial rate and exports rate may
also lead to a state where there is a business inequality among two trading partners.
A study of the association among exports and exchange rate could be completed on the
government and national degree, or it might be viewed from a personal context. On the federal
level, a state whose currency is unstable is at a detriment when conducting business transactions
with a country with tenacious money. This is because of the country with a weak curre...
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