Exchange rates affect: I. international trade flows
II) international investment flows
III) corporate earnings

Question

Quizplus · Accepted Answer

Exchange rates influence international trade flows by making exports cheaper or more expensive, affect international investment flows by impacting the return on foreign investments, and can also affect corporate earnings through their impact on both international sales and the value of foreign-denominated profits when converted back to the corporation's home currency.

Exchange Rates Affect: I. International Trade Flows