Foreign trade means when a country is engaged in import and export of goods and service with other countries.

Exchange Rate refers to value of the currency of one country in terms of the currency of another country. Example: The units of Dollars one can get in exchange of 10 Euros. A currency is regarded strong in comparison with the other currency if one can get more of a currency in exchange of less amount of own currency. The exchange rate is subject to fluctuations and changes on a daily basis..