Your US-Based Company Is Selling Parts to a Company in Chile

question 45

Multiple Choice

Your U.S.-based company is selling parts to a company in Chile and the company will pay you 9.8 million pesos in 3 months. The current exchange rate is 490 pesos/US$. If the exchange rate at the time of payment is 510 pesos/US$

• A)you earn additional profit.
• B)the Chilean company will end up paying more for the goods.
• C)the Chilean company will end up paying less for the goods.
• D)you earn less profit.

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Definitions:

Addiction

A chronic condition characterized by compulsive engagement in rewarding stimuli despite adverse consequences.

Substance

A form of matter with a constant chemical composition and characteristic properties.

Troubles

Difficulties or problems causing distress or worry in an individual's personal life.

Compulsion

A strong, usually irresistible urge to perform an act, especially one that is irrational or contrary to one's will.