QUESTION 1 [14 MARKS] II Proh is a working for SMS Energy, a renewable energy company as a procurement officer. The company recently won a tender to supply wind power to Eskom. They are currently busy with building a wind power station and Hopfield, Western Cape. Proh realised that they need to import two main items (namely; wind turbines and an intelligent power monitoring software) into South Africa since there are no suppliers in South Africa. This need to be done urgently. After a few internet searches, Proh came across only one international company selling wind turbines needed for the project and 25 software suppliers. She just saw the turbines on the company's website and enquired on the prices. They are quoted in United States Dollars (US$) and the cheapest is US$120 000. The company requested SMS Energy to make an online payment before the turbines are delivered. Most software firms have indicated that they are willing to bring the software to South Africa at the cost of SMS Energy, install the software, do a test-run and provide after-sale repair and maintenance services. Proh wants a second opinion to assist her on procurement. Advise Proh on the following two issues. 1.1. the effect of the exchange rate on procurement (6) 1.2. The risks (positive and negative) associated with online payment technology. (8)