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

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Essay

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?


Definitions:

Cigarette Smoking

The act of inhaling and exhaling the smoke produced by burning tobacco contained in cigarettes, which is harmful to health.

Respiratory System

The body system that carries on gas exchange; in vertebrates, consists of the lungs and airways.

Carbon Dioxide

An odorless and colorless gas, the result of organic compounds and carbon being burnt and the process of respiration. Found naturally in the atmosphere, it is essential for the photosynthesis conducted by plants.

Blood

Blood is a vital fluid in humans and other animals that transports necessary substances such as nutrients and oxygen to the cells and carries away waste products.

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