Core Concept of adverse exchange rate fluctuations

Question

Explain about the Core Concept of adverse exchange rate fluctuations.

Answer 1

Core Concept:

Fluctuating exchange rates pretense major risks to a company’s competitiveness in outside markets. Exporters win when the currency of the country where products are being manufactured grows weaker and they drop when the currency grows powerful. Domestic companies beneath force from lower-cost imports are advantaged when their government’s currency grows feebler in relation to the countries where the imported products are being made.