The Economics and Finance Letters

Published by: PAK Publishing Group
Online ISSN: 2312-430X
Print ISSN: 2312-6310
Total Citation: 21

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The Relationship between Currency Conversions and International Business Transactions: Small Businesses and Travelers

Pages: 57-63
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The Relationship between Currency Conversions and International Business Transactions: Small Businesses and Travelers

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DOI: 10.18488/journal.29/2016.3.4/29.4.57.63

Ngozi Oriaku , Ebere Oriaku

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(2016). The Relationship between Currency Conversions and International Business Transactions: Small Businesses and Travelers. The Economics and Finance Letters, 3(4): 57-63. DOI: 10.18488/journal.29/2016.3.4/29.4.57.63
This research looks at currency conversions and how it affects international business transactions especially small businesses and travelers. The idea is to show the discrepancy of currency conversion and the factors that do affect currency conversion in any given time for a business person or a traveler.  In order to increase small business and traveler’s awareness when it comes to doing business abroad, it is imperative to understand the currency conversions, its implications, and the commitments needed to protect investments and value of the conversion exchange. Research shows that small businesses have little or no adequate knowledge of currency conversions. The paper research questions are: (1) Do foreign exchange rates uncertainty reduce the incentive of travelers and small business owners from transacting business abroad? (2) Is it necessary for travelers and small business owners to understand the relevance of foreign exchange rates and risks management?
Contribution/ Originality
This study documents a rule of thumb that the main objective of businesses is to maximize profits and minimize costs. It illustrates that the knowledge of currency conversions is very vital to all small business practitioners.