Question

Exchange rates are included in which of the following international environments?

a. The legal-political sector
b. The economic environment
c. The sociocultural environment
d. The barter system environment
e. The government sector

Answer 1

Exchange rates are included in the economic environment of international business.

Step-by-step explanation:

The correct answer is: b. The economic environment

Exchange rates are included in the economic environment of international business. The exchange rate is the value of one currency in relation to another and it plays a significant role in international trade and investment.

For example, a country with a weak currency may have lower export prices, making its goods more competitive in foreign markets. On the other hand, a strong currency may lead to higher import prices, making it more expensive for domestic consumers to purchase imported goods.

Overall, exchange rates impact various aspects of the economy, including trade, investment, and inflation. Therefore, it is important for businesses and governments to closely monitor and understand exchange rate movements.