Jummy Fruits is considering a change in its general purchase terms that would stipulate euros as the standard currency for all purchase contracts. The business rela-tionship with Pacific Dream is currently based on US-dollar contracts. With this move, Jummy Fruits hopes to be able to transfer exchange rate risk to its supplier.

Discuss under what conditions this risk transfer could make sense for both partners. What could Jummy Fruits do to make Pacific Dream accept the changed purchase conditions?