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Research and study historical foreign exchange rates between home country and the target country for a minimum of 12-36 months. Analyze the trend. Home currency is the currency of your home country where your business is established, and the target country's currency is the foreign currency. Tabulate the historical data into an Excel worksheet and forecast future exchange rates between home currency and foreign currency for the next 12-36 months. Use FORECAST FUNCTION/FORECAST SHEET in excel to project currency rates. Assuming the trends to continue, state how the rates would affect your revenues/costs and your export business in future. Here is a quick video on forecast function in excel. Please use Canadian and US Dollars for the exchange rates. Here is the link. . Please note that you must express the currency in terms of home currency per 1 unit of foreign currency. (For example, if Canada is your home country and US is the foreign country, the currency rate is expressed as 1 USD= 1.2685 CAD)
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