Problem:
The head of sales wants to discuss potential sales in international markets. The sales vice president has estimates of the number of units that could be sold in various international markets. However, he is not sure how they would be priced in local currency and what determines the value of currencies in foreign markets.
I need to compose a memo on foreign exchange rate determination. Specifically, he wants you to articulate the factors that determine the value of foreign currency and how/why currencies move as they do.