Ajax International Always Invoices Its Customers in Hard Currencies

question 14

Multiple Choice

Ajax International always invoices its customers in hard currencies.What has the firm done to the currency risk that may prevent future sales?

• A) It has shifted the exchange rate risk entirely to the customer who may seek other suppliers with less rigid terms.
• B) It has shared the exchange rate risk with its customers who may object.
• C) It has done nothing to shift or share exchange rate risk with its customers.
• D) It has avoided the possibility of exchange rate controls imposed by the governments of its customers.

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Definitions:

Market Share

The slice of a market under the control of a particular company or product.

Unit Sales

The total number of individual items or units sold within a specific timeframe.

Quality

The degree to which a product or service meets or exceeds customer expectations, often used as a key indicator of value and reliability.

Logistics

The detailed organization and implementation of a complex operation, often referring to the process of coordinating and moving resources like materials, equipment, and inventory.