Suppose your company in Indonesia imports Lamb meat from Australia. The current exchange rate 1 0 ,
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Question:
Suppose your company in Indonesia imports Lamb meat from Australia. The current exchange rate per AUD or in AUD You have just placed an order for ton at a cost to you of AUD per ton. You will pay the shipment when it arrives in days. You can sell the meat for IDR per ton. Calculate your total profit in IDR! Calculate your total profit if the exchange rate goes up by percent over the next days! What is the breakeven exchange rate?
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