When Exporting to a Soft Currency Country That Is Experiencing

question 38

Multiple Choice

When exporting to a soft currency country that is experiencing a weakening exchange rate, which of the following may be used to counter the transaction risk:

• A) Exporters can insist on immediate and full payment
• B) Exporters ensure that the importer pays the full hard currency amount over a reasonable time period
• C) Exporters can build in an export price premium to compensate for any currency depreciation
• D) Any of the above

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