Q 1 -Distinct between currency translation and currency conversation.

Defination of Currency Conversation

The price of one currency expressed in terms of another currency. For example, if the U.S. dollar buys 1.40 Canadian dollars, the exchange rate is 1.4 to 1. Changes in exchange rates have significant effects on the profits of multinational corporations. Exchange rate changes also affect the value of foreign investments held by individual investors. For a U.S. investor owning Japanese securities, a strengthening of the U.S. dollar relative to the yen tends to reduce the value of the Japanese securities because the yen value of the securities is worth fewer dollars. Also called foreign exchange rate.

Currency exchange rates also influence investment values of the company.When the exchange rate between the foreign currency of an international investment and the U.S. dollar changes, it can increase or reduce your investment return. Because foreign companies trade and pay......

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Title: Financial Regulation
Approximate Word Count: 4105
Approximate Pages: 17 (250 words per double-spaced page)

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