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Xi Chung Is the Owner of a Popular Bar in a College

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Xi Chung is the owner of a popular bar in a college town and typically advertises in the college newspaper about upcoming drink specials or special events. Xi was an early adopter of e-marketing and worked with a college intern to create a webpage for the business. At the time, Xi believed he could simply modify the newspaper advertisements and Yellow Page listings and publish those to the webpage to attract customers and inform them of events. However, his early efforts with e-marketing were not successful. Which of the following could explain why his website failed?

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Definitions:

Exchange Rate

The ratio of exchange between two currencies.

Exchange Rates

The rate at which one currency can be exchanged for another, which can fluctuate due to market forces.

Functional Currency

The money type utilized in the financial statements of a business, which is from the main economic setting where the business functions.

Local Currency

The currency of the country in which the foreign operation is based.

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