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QUESTION 8 An exporter faced with exposure to an appreciating foreign currency can reduce economic exposure with a strategy o

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PAYING LATE, COLLECTING EARLY

Currency appreciation refers to the increase in the value of one currency against another. An appreciation makes exports more expensive so it weakens our demand and the market we are supplying to so to be in the line we must collect our payments early and pay the receivables later so we can have a margin on the latter date.

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