If you are an exporter from the U.S. and you are selling $1,000,000 value worth of product to an importer. You and the importer agree to use the importer's currency for the payment. Please: Record the exchange rate at the beginning of the month (you can use the exchange rate of any week as you prefer) Calculate the expected sale value of this transaction by using the beginning of the month exchange rate Record the exchange rate at the end of the month Calculate the expected sale value of this transaction by using the end of the month exchange rate Compare the two expected sale values and demonstrate whether as an exporter, are you incurring a gain or a loss with the different exchange rates * You can decide where the importer is from and the importer's currency.

example:

The exchange rate at the beginning of the month: 11/1/2021 U.S. $1.16 / 1

Expected sale value using the beginning of the month exchange rate: 862,068.97

The exchange rate at the end of the month: 11/26/2021 - U.S. $1.13 / 1

Expected sale value using end of the month exchange rate: 884,955.75

Comparison of the two expected sale values: When the euros value declines, the exporter will incur a loss in their sales.