1.3 The Importance of Exchange Rates two factors: the price of foreign goods ir their countries and the exchange rates ◆ An example ◆acar:$20000, exchange rate: 8yuan/dollar-10yuan/dollar exchange rate: 8yuan/dollar- 5yuan/dollar1.3 The Importance of Exchange Rates  two factors: the price of foreign goods in their countries and the exchange rates  An example  a car: $ 20 000,  exchange rate: 8yuan/dollar －10yuan/dollar  exchange rate: 8yuan/dollar — 5yuan/dollar