A US company exports 10 machines to a German company, with a contract valued $680,000. Following...
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A US company exports 10 machines to a German company, with a contract valued $680,000. Following are the exchange rates: a. Spot exchange rate: $1= 1.6212 b. Billing exchange rate: $1 = 1.6011 C. After 5-months exchange rate decreased 5% Did the German company make gain or loss from this contract d. Assume that the spot rate was = $1= 0.653 Is this change going to benefit the German company? A US company exports 10 machines to a German company, with a contract valued $680,000. Following are the exchange rates: a. Spot exchange rate: $1= 1.6212 b. Billing exchange rate: $1 = 1.6011 C. After 5-months exchange rate decreased 5% Did the German company make gain or loss from this contract d. Assume that the spot rate was = $1= 0.653 Is this change going to benefit the German company?
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a The spot exchange rate is used for immediate transactions So the contract value of 680000 wou... View the full answer
Related Book For
Edexcel AS And A Level Mathematics Pure Mathematics Year 1/AS
ISBN: 9781292183398
1st Edition
Authors: Greg Attwood
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