why cash flows hhghly dependent on exchange rates

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why cash flows hhghly dependent on exchange rates
financial managers of MNCs that conduct international business must continuously monitor exchange rates because their cash flows are highly dependent on them. Discuss the relevant factors that affect exchange rates.

In international business, contracts and transactions are concluded in different functional currencies. (If you have heard the term functional currency, you will know that each country has one functional currency and most of the time, the transaction needs to be concluded in that currency) Hence, the cash inflow and outflow may have one pair of currency for each transaction. Cash flows is the net effect of cash inflow and outflow of all these currencies. The relative exchange rate and its fluctuation decides the net effet.
E.g. If Mitsubishi Japan concludes a contract by selling elevators in US, the cost (outflow) will be in JPY and the revenue (inflow) will be in USD; the JPY/USD rate decides how much the net inflow (profit) will be, even for the same amount of revenue generated from US.

什么是 relevant cash flows 中文意思：Trade,exchange rates,budget balances and interest rates 英语翻译9.Cash flows from operating activities report cash recei cash-on-cash Be dependent on 英语翻译Because present value distinguishes between cash flows t 英语翻译Which method of computing cash flows requires a suppleme 英语翻译Cash Flows from Financing Activities18.Financing activit Operating cash flows to total liabilities ratio 怎么翻译?急英语翻译Pegasus adjusts foreign exchange rates by using a retail be dependent on什么意思 dependent on 如何连读