4.5 Exchange Rate Fluctuation on ProfitabilityAs shown in Table 4.5 Chi-square statistics were carried out to establish the effect of exchange rate fluctuation on the profitability of small and medium automobile companies with three degrees of freedom and sample size of 89 respondents, respondents were asked if their company was affected by exchange rate fluctuation, the sample included respondents strongly agree (1), those who agreed (2) those who disagreed (3) , those who strongly disagreed (4) and those who did not know. The relationship between these values ​​was significantly different X3 (3, N = 89) = 171.57, p < 0.05. The results showed that exchange rates significantly determine the number of products purchased by these companies in global markets X3 (3, N = 89) = 111.57, p < 0.05. Exchange rates were also studied before the adoption of global sourcing for these companies X3 (3, N = 89) = 189.86, p < 0.05. The global sourcing strategy was influenced by the fluctuation of currencies used in global markets, which showed that there was a strong deference between global markets and exchange rate changes X3 (3, N=89) = 60.71, p < 0.05. Many companies had large inventories to weather periods of inflation so they could turn to global markets when exchange rates are favorable X3 (3, N = 89) = 145.92, p < 0.05. Some companies have replaced their preferred supplier due to pricing changes, but most have not done so due to the costs of moving supplier bases across markets. From the results, we can show that exchange rate fluctuations greatly affect global markets, especially the automobile markets that were the focus of this study (Marcus, 2011). Higher fluctuation... middle of paper ...... markets Equal variances assumed 10.9 .002 -1.946 33 .060 -.7000 .35971 -1.43184 .03184 Equal variances not assumed -4.826 29.0 .000 -.7000 .14503 -.99663 -.4033The company only sells motor vehicles purchased locally from large companies.Equal variations assumed .001 .977 -1.353 33 .185 -.6333 .46793 -1.58534 .31867Equal variations not assumed -1.219 5.05 .277 -.6333 . 51969 -1.96492 .69825 Company sales motor vehicles that are purchased from assumed following closures worldwide variances 3.16 .084 -.837 33 .409 -.5333 .63744 -1.83022 .76355553333333333333333333333 3333333333333. 2.01851 .95184 Firm sales of motor vehicles purchased from major automobile companies and in global markets Equal variances assumed 0.364 0.551 -0.627 33 0.535 -0.2000 0.31909 -0.84919 0.44919 Equal variances not assumed -.729 6.22 .492 -.2000 .27418 -.86508 .46508