Exchange rates affect the translation of earnings into the home country currencies.

Question

Quizplus · Accepted Answer

Exchange rates determine the value of one currency in relation to another, and this affects the translation of earnings from a foreign currency into the home country's currency. A stronger home currency relative to the foreign currency can result in higher earnings when translated, while a weaker home currency can result in lower earnings.

Exchange Rates Affect the Translation of Earnings into the Home