Explain,using simple numerical examples,how (a)a gain and (b)a loss can arise due to changes in currency exchange rates for a business that is (i)selling goods or services to an overseas buyer and (ii)purchasing goods or services from an overseas supplier.Also explain two ways in which a business engaging in international trade can try to protect itself against possible exchange losses.What are the possible disadvantages,if any,in using the methods you suggest?

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The Answer of Explain,using simple numerical examples,how (a)a gain and (b)a loss can arise due to changes in currency exchange rates for a business that is (i)selling goods or services to an overseas buyer and (ii)purchasing goods or services from an overseas supplier.Also explain two ways in which a business engaging in international trade can try to protect itself against possible exchange losses.What are the possible disadvantages,if any,in using the methods you suggest?

Explain,using Simple Numerical Examples,how (A)a Gain and (B)a Loss Can