. What is meant by the term "foreign exchange rate"? In general, what causes foreign exchange rates to vary over time? . Do changes in foreign exchange rates benefit or hurt U.S. companies that are doing business in foreign countries? Given the inherent uncertainty associated with currency exchange rates, is there a possibility of reducing the uncertainty? That is, what options are available for controlling or at least addressing this risk? What would you advise the president of SEW to do with respect to foreign exchange risk? . Given that SEWMEX receives payment in U.S. dollars and pays expenses in Mexican pesos, what is SEWMEX's greatest risk with regard to the foreign exchange rate?