Exchange rate uncertainty could have a negative impact on U+S+ poultry exporters as it
might create pressure on their profit margin+ For instance the Asian financial market crisis
in 1997 and the Russian poultry meat embargo in 2001 had significant ramifications
for poultry exporters+ The Asian crisis started with a wave of currency devaluations, stock
market plunges, and business failures in several countries across the East Asian region+
Exchange rate—the price of a nation’s currency in terms of another nation’s currency—is
probably the single most important variable in determining the level of trade+ The fluctuations
in the real exchange rate result in the rise and fall of the prices of U+S+ agricultural
products in terms of the local currency in foreign countries+ The Asian crisis led to
the depreciation of the foreign currencies ~appreciation of U+S+ dollar!+ A depreciated
currency in Asia raised the price of U+S goods abroad and could consequently reduce the
volume of U+S+ export sales+ Severe and prolonged future financial crisis could substantially
lower U+S+ agricultural export earnings and shift trade patterns in some Asian
countries+