Describe the process of exchange control and explain how it affects a country's ability to conduct global business.

Exchange control refers to the regulation of a country's currency exchange rate, the measure of how much one currency is worth in relation to another. When the dollar falls, it has a twofold effect on U.S. firms' ability to conduct global business. For firms that depend on imports of finished products, raw materials that they fabricate into other products, or services from other countries, the cost of doing business goes up dramatically. At the same time, buyers in other countries find the costs of U.S. goods and services much lower than they were before.