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The home country is where a company is headquartered.

The firm is likely to be paid or have profits in a different currency and will want to exchange it for its home currency.

If all goods were freely tradable, and foreign and domestic residents purchased identical baskets of goods, purchasing power parity (PPP) would hold for the exchange rate and GDP deflators (price levels) of the two countries, and the real exchange rate would always equal 1.Even if a company expects to be paid in its own currency, it must assess the risk that the buyer may not be able to pay the full amount due to currency fluctuations.XE Currency Converter - Live Rates com/currencyconverter Calculate live currency and foreign exchange rates with this free currency converter.In order to determine which is the fixed currency when neither currency is on the above list (i.e.both are "other"), market convention is to use the fixed currency which gives an exchange rate greater than 1.000.

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