Assignment task:
Please use the following question and instructions for attempting the Unit Exercise:
Question: The changes in currency exchange rates affect international trade. Consider that you are a company operating in Canada and answer the following:
1. How does the weakening or strengthening of Canadian Dollar (valued relative to USD), influences the price of Canadian exports and the price of imports?
2. How do unfavorable movements in exchange rates influence Canadian businesses participating in international trade? Provide examples to explain the impact.
3. What factors influence the exchange rate of Canadian Dollar vis-à-vis other foreign currencies especially USD.