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Foreign Currency Forecast Prior to 1920 foreign currency translation was not an issue. Though commodities were exchanged over international boundaries, few U.S. corporations had foreign subsidiaries or branches. Thus most transactions were conducted at spot rates. The currency of the country is theoretically set by supply and demand. Central Banks of the various countries are free to purchase and sell foreign currencies to affect exchange rates. Other currencies of the world are valued under a modified version of the floating rate or under a pegged system. Doing business abroad has never been an easy feat. You need to be able to conclude the transaction. Then you have to make sure you get paid. As if this was not complicated enough, exporters now run the risk of losing revenue due to fluctuations on the foreign exchange market when the transaction is conducted in a foreign currency. Pages: 5 Bibliography: 1 source(s) listed Filename: 708 Foreign Currency Forecast.doc Price: 44.75

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