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Explain how it change rates can affect the firm's global sales. (can be short answer)

Explain how it change rates can affect the firm's global sales.
(can be short answer)

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Answer #1

Exchange rate is the rate at which one currency is exchanged for another currency. Change in the exchange rate affects the price of materials used in production which in turn affects the price. When price changes because of a change in the exchange rate, it affects sales.

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