Fluctuations in __________ among the world's currencies have direct impact on the sales and profits made by global companies.
A)immigration
B)transportation
C)reciprocity
D)exchange rates
E)equity

Question

Quizplus · Accepted Answer

Fluctuations in exchange rates among the world's currencies can impact the sales and profits made by global companies because changes in exchange rates affect the prices of goods and services being bought and sold across borders. For example, if a company's home currency strengthens against another currency, it becomes more expensive for consumers in that other country to buy the company's products, potentially reducing demand and sales. Similarly, if a company's home currency weakens, it can make the company's products more affordable and potentially increase demand and sales. Thus, exchange rate fluctuations can directly impact a company's bottom line.

Fluctuations in __________ Among the World's Currencies Have Direct Impact