4.5 Exchange Rate Fluctuation on ProfitabilityAs shown in table 4.5 Chi square statistic was carried out to establish the effect of exchange rate fluctuation on the profitability of small and medium automotive companies dimensions with three degrees of freedom and sample size of 89 respondents, respondents were asked whether their company was affected by exchange rate fluctuation, the sample included respondents strongly agree (1), those agree ( 2) and 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 for these companies from global markets X3 (3,N=89)=111.57, p <0.05. Exchange rates before adopting global sourcing for these companies were also studied X3 (3, N=89) =189.86, p <0.05. The global sourcing strategy was affected by the fluctuation of currencies used in global markets, this showed that there was a strong and significant deference between global markets and exchange rate changes X3 (3, N=89) =60.71 , p < 0.05. Many companies had large inventories to deal with periods of inflation, so they turn to global markets when exchange rates are favorable X3 (3, N=89) =145.92, p <0.05. Some companies have switched preferred suppliers due to tariff changes, although most have not done so due to the costs of moving supplier bases across markets. From the results we can demonstrate that exchange rate fluctuations significantly influence global markets, especially the automotive markets covered by this study (Marcus, 2011). Higher fluctuation...... middle of paper...... rkets 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 vehicles purchased locally from large companies. Equal variances hypothesized .001 .977 -1.353 33 .185 -.6333 .46793 -1.58534 .31867 Equal variances not hypothesized -1.219 5.05 .277 -.6333 . 51969 -1.96492 .69825 The company sells motor vehicles that are purchased by global variations in assumed maturity 3.16 .084 -.837 33 .409 -.5333 .63744 -1.83022 .76355555555555555555555555555555555 5555555555 5555555555555555555555 55555555555555555555555555555555555555555555555555 ° they were not assumedly believed -. 890 5.70 .409 -.5333333333333333333333333333333333333333333333333333333333333333333333. 2.01851 .95184Company sells vehicles purchased from large automotive companies and global marketsEqual variances assumed .364 .551 -.627 33 .535 -.2000 .31909 -.84919 .44919Equal variances not assumed -.729 6.22 .492 -.2000 .27418 -.86508 .46508