The Impact of the Exchange Rate on Enterprise’s International Export Trade Sales during Economic Downturn Cycles

School of Finance, Zhejiang University of Finance and Economics, Hangzhou, 310018, China

^* Corresponding author: chenhongyu@ldy.edu.rs

Abstract

Research has shown that the exchange rate will affect the export volume of enterprises. The exchange rate significantly impacts a country’s economy, including its foreign exchange and financial aspects. ordinary least squares (OLS) will be utilized in the research to assess the impact of exchange rates on export trade volume during economic downturns. Through regression equations, it was found that the exchange rates of major trading countries have an impact on export volume, while the exchange rate of the US dollar has no impact, but the exchange rate of the US dollar has an impact on gasoline engine sales. The main reason for this is that excessive exchange rate fluctuations can cause customers to be bearish on their currency value, so the country should formulate a stable monetary policy, companies should carry out digital risk management, and actively pay attention to changes in the international situation to cope with exchange rate fluctuations with a positive attitude.