Currency variations are changes in exchange rates that can affect the purchases and profitability of the international firm.

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Currency variations, also known as exchange rate fluctuations, can have a significant impact on the purchases and profitability of international firms. These changes in exchange rates can make imported goods more expensive, while exported goods become cheaper or more expensive depending on the direction of the exchange rate movement. Therefore, currency variations can affect both the revenue and the cost of doing business for multinational companies.

Currency Variations Are Changes in Exchange Rates That Can Affect