International transactions involve the currency of two or more nations. Companies rely on the foreign exchange market to help them exchange one currency for another. The foreign exchange allows the buying and selling and determines the prices of these currencies.

For this assignment:

1. First, explain what the foreign exchange market is and describe its functions in detail.

2. Currency exchange rates: The book lists several exchange rates for major currencies; pick three and compare the text's exchange rate with the current exchange rate. List the date you researched the new exchange rate and source, comment on the trend, and what you feel may have caused the change in rates.

3. How does an increase or decrease in the exchange rates of two currencies affect businesses in both the country you live in and one you may visit or import goods from? Give examples of specific businesses or industry and the effect a currency exchange change has.

PLEASE ANSWER EACH QUESTION ON YOUR OWN WORDS*