Question: Chemsav is a U . S . - based chemicals company that exports industrial chemicals to the U . K . for payments in GBP
Chemsav is a USbased chemicals company that exports industrial chemicals to the UK for payments in GBP It is worried about the risk from economic exposure, especially if the value of the USD rises. What effect would that have on Chemsav's export activities?A Chemsav will have to increase its export price in GBP and its customers might seek alternative suppliers.B Chemsav will have to decrease its export price in GBP and will therefore suffer from reduced profits.C It will have to find alternative banking arrangements with higher interest rates.D It will have to trade in a different currency to keep export prices stable.
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