An Exporter Can Shift Exchange Rate Risk to Their Customers

question 57

Multiple Choice

An exporter can shift exchange rate risk to their customers by

• A)invoicing in their home currency.
• B)invoicing in their customer's local currency.
• C)splitting the difference,and invoicing half of sales in local currency and half of sales in home currency.
• D)invoicing sales in a currency basket such as the SDR as the invoice currency.

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Definitions:

Coastal Fish Farms

Aquaculture operations located near the coastlines where fish are raised in controlled environments for commercial purposes.

Alien Species

Alien species, also known as invasive species, are organisms that are introduced to a new habitat where they are not native, often causing harm to the environment, economy, or human health.

Great Lakes

A group of five large, interconnected freshwater lakes located on the border between the United States and Canada, significant for their water resources, biodiversity, and transportation routes.

Thermal Pollution

The degradation of water quality by any process that changes ambient water temperature, typically due to industrial activities like power plants.