Cost refers to how many yuan it takes to exchange one unit of an export commodity.
In other words, how many yuan of “total export cost” can be converted into a unit of foreign currency “net income foreign exchange“.
The exchange cost is controlled within 5 to 8. If the exchange cost is higher than that, the export will be a loss, otherwise it will be a profit.
The cost of foreign exchange reflects the profit and loss of export commodities and is an important index to examine whether an export enterprise has economic benefits. The standard of its measurement is: RMB.
If the exchange cost is higher than the exchange rate of RMB against US dollar, then the export of the commodity is a loss. Although there is a gain of foreign exchange, the export itself has no economic benefit. The higher the exchange cost, the greater the loss.
Therefore, to avoid losses, we must accurately measure the cost of exchange.
