foreign exchange rates (2)

given the foreign exchange rate , it is now simple for me to buy my English car . Suppose its quoted prices is euro 4000 (i,e.,4000 British pounds).all i have to do is look in the newspaper for the foreign exchange rate for pounds . If this is $ 2.00 per pound, I simply go to a bank with $8000 and ask that the money be used to pay the English car exporter. pay him what ? pounds , of course ,the only kind of money he needs .Whether I use the bank or a broker is of no particular importance . In fact , it is all the same if the English exporter sends me a bill requesting payment in dollar or if he deals with me through an American dealer . In any case , the English exporter ultimately wants pounds , not dollars , and will soon trade the $8000 for euro 4.000 . (needless to say , we ignore commission charges and the cost of money orders.) you should be able to show what a British importer of American grains has to do if he wants to buy , say a $24,000 shipment from an American exporter. here pounds must be converted into dollars . why , when the foreign exchange rate is $2.00 per pound , will this cost him euro 12,000 ?
The businessman or tourist does not , as an individual, have to know anything more than this to get imports or exports transacted . but the true economics of the problem cannot be grasped until we find out why the foreign exchange rate is at the level it is. what economic principle determine foreign exchange rates? and underlie their movements?