This occurs if the currency in the home market strengthens relative to the currencies in the destination markets, which reduces the value of earnings from foreign assets. For example, an export manager from one of the companies interviewed said: «We pay our employees' salaries in Swiss francs. Customers pay in euros. Due to the current strength of the Swiss franc, we suffer a large margin loss.” Furthermore, inflation in foreign markets can have a similar effect if it leads to the devaluation of the affected currencies. Recessions in foreign markets and increases in government debt may increase demand for the company's products