Explain how exchange rates can affect profits and sales for businesses that export.

In an exam context, Explain how exchange rates can affect profits and sales for businesses that export sits within Exchange rates and Globalisation for AQA GCSE Business 8132. Use a business such as CraftCrate serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?8,107, sales of 987 units, and a 40% change in costs or demand to keep the explanation applied. The important reasoning is to connect sales, profit, exchange rates with the business objective, the financial implication, and the effect on local community. Avoid treating internal and external finance as the same thing. A high-quality answer should explain the commercial trade-off, use precise evidence, and finish with a judgement that depends on the context rather than a generic definition.