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:

Insect Control

Insect control refers to the methods and practices used to manage and reduce pest insect populations to protect crops, human health, and the environment.

Sterilization

The process of making something free from bacteria or other living microorganisms, often through heat or chemical means.

PMRA

Pest Management Regulatory Agency, the Canadian government agency responsible for the regulation of pesticides and pest management strategies.

Pesticides

Substances used to eliminate or control pests affecting plants or animals, which include herbicides, insecticides, and fungicides, among others.