In: Operations Management
The exchange rate of a currency is the price paid in one country's currency for the currency of another country. If a company in the United States sources parts from a company in Europe, dollars will need to be converted to euros to pay for the parts. This need to convert currency introduces uncertainty as to the actual cost of the parts, since the exchange rate at the time the price is quoted may be different from the rate when payment is made. If the value of the euro appreciates, it will take more dollars to make payment in euros. If the value of the euro depreciates, it will take fewer dollars.
This exercise is designed to give you practice with currency exchange and help you better understand fluctuations in the exchange rates in CountryManager.
COUNTRYMANAGER |
USD |
ARS |
BRL |
CNY |
YEN |
|
USD (US dollar) |
— |
8.1301 |
2.1529 |
6.4809 |
80.2568 |
ARS (Argentine peso) |
— |
||||
BRL (Brazilian real) |
— |
||||
CNY (Chinese yuan) |
— |
||||
YEN (Japanese yen) |
— |