Cambridge O Level Business Studies · Syllabus 7115 · External Influences on Business Activity
Exchange Rate
What is Exchange Rate?
The price of one currency expressed in terms of another, determining how much of a foreign currency a unit of the home currency will buy. It matters to business because it converts every internationally traded price: it sets how much a firm pays in its own currency for imported inputs, and how expensive its exports appear to a foreign customer paying in their own currency. In syllabus 7115 exchange-rate calculations are not assessed; only the direction and business consequences of a change are examinable.
This definition is part of the External Influences on Business Activity chapter in Cambridge O Level Business Studies.
Last reviewed Syllabus 2026