![]() Selling in Europe is comparatively less profitable than Asia due to exchange rates so therefore it’s important to have emphasis in selling products in Asia as far as revenues are concerned. Taking into account that shipping international simply costs more through tariffs and shipping charges, the fact of the matter is revenues in Europe lose value through the exchange rate by 10%, Asia increases revenue by 10% and LA does nothing either way. ![]() * LA 1 per American dollar (therefore it’s even.) Here’s a fictitious set of exchange rates, remember all BSG companies work in American dollars at the end of the day. ![]() Understanding exchange rates is the equivalent of taking advantage of the winds at sea in the sense that they are totally uncontrollable, but can be “tamed”. They are punishing and extremely beneficial to the whole industry. A totally uncontrolled area of the business strategy game is exchange rates.
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