Explain How Exchange Rate Fluctuations Pose a Risk to Manufacturing

question 6

Essay

Explain how exchange rate fluctuations pose a risk to manufacturing companies that rely upon an export strategy to compete in foreign markets.

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Definitions:

Cloud Formation

The process by which water vapor in the atmosphere cools and condenses into water droplets or ice crystals, forming clouds.

Precipitation

Atmospheric water that falls to the surface as rain, snow, hail, or sleet.

Slopes

Inclined surfaces of the land, determining the direction and speed of water flow and often a factor in erosion and sediment deposition processes.

Arctic National Wildlife Reserve

A protected area in northeastern Alaska, USA, known for its diverse wildlife and vast landscapes, including tundra and forest.