Define Exchange Rate and Explain How Exchange Rates Can Affect

question 82

Essay

Define exchange rate and explain how exchange rates can affect international trade.

---

Definitions:

FVTPL

Fair Value Through Profit or Loss, an accounting strategy whereby financial assets are valued at their current market price, with changes in fair value recorded in the profit or loss statement.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but not complete control.

Unrealized Gains And Losses

Gains and losses that have occurred on paper, but the corresponding financial assets have not yet been sold or realized.

Voting Shares

Shares that grant the holder the right to vote on company matters, typically at shareholder meetings.