i have searched everywhere for a simple definition.
nothing is simple these days
2006-10-10 18:51:55 · 4 answers · asked by music theft 1 in Social Science ➔ Economics
Different countries have different currencies. Given this, the currencies will have different values. Placing a value on a particular currency so that this value is equivalent to the currency value of another country is foreign exchange.
Simply, foreign exchange earnings is the perceived profit in terms of value of currency in foreign exchanges. This perception is very relative so there is no one exact standard of measure.
Sorry, can't go any simpler than this.
2006-10-10 21:24:22 · answer #1 · answered by Redhawkphl 2 · 0⤊ 0⤋
There isn't a "definition" for this. It has to do with foreign currency exchange, which happens when a firm does business in another country.
Take Toyota as an example. They're a Japanese company, but sell cars in the US. In the US, the car is priced in US Dollars, which ultimately need to be exchanged for Japanese Yen.
Foreign Exchange Earnings would be the $value of the foreign money in that firm's home or native country. This way, Toyota can look at it's overall earnings in Yen and see how much they made in sales worldwide.
2006-10-12 07:59:11 · answer #2 · answered by msoexpert 6 · 0⤊ 0⤋
The countries have different currencies. But all currencies are equated to $, Euro etc., and the reserve of a country in $ and Euro is the foreign exchange it is keeping with it. Imports make you to spend these foreign exchange. Exports bring in foreign currency. Even a country whose currency is different from $ or Euro have to pay in these for import and get these currencies for their exports. Incoming of these currencies to a country is the foreign exchange earnings mostly given by exports, money sent by people working abroad. Expenditure of foreign exchange reserve is through import.
VR
2006-10-11 18:58:29 · answer #3 · answered by sarayu 7 · 0⤊ 0⤋
the export -import + interest on investments in a foreign country+ earnings from agencies in a foreign country+funds deposited by using citizen servants in a foreign country - royalties paid for collaborations - interest on distant places loans - funds made to distant places persons/bodies = forex income.
2016-10-16 01:41:57 · answer #4 · answered by Anonymous · 0⤊ 0⤋