Question: 5. Currency exchange rates can be the difference between healthy profit, and substantial losses for an international business.' Discuss this statement as follows, using illustrative

5. "Currency exchange rates can be the difference between healthy profit, and substantial losses for an international business.' Discuss this statement as follows, using illustrative examples: a) Explain what an exchange rate is, and how an exchange rate is arrived at, using illustrative examples. (6 marks) b) Assess the risks faced by an international business working with many exchange rates. (8 marks) c) How can an international business reduce these risks? (6 marks) d) What is the role of the International Monetary Fund when there is a currency (5 marks) crisis

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