Malaysian palm oil producers export more than 90% of their product for sale in dollars. Virtually all
Question:
Malaysian palm oil producers export more than 90% of their product for sale in dollars. Virtually all their costs, however, are in Malaysian ringgit.
a. How would the 30% fall in the value of the ringgit during 1997 affect the ringgit profitability of these producers? Explain.
b. How would the ringgit's depreciation affect the dollar profits of these producers? Explain.
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a Ringgit depreciation combined with a dollar price for palm oil trans...View the full answer
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Related Book For
Foundations Of Multinational Financial Management
ISBN: 9780470128954
6th Edition
Authors: Alan C Shapiro, Atulya Sarin
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