how would a rise in the Australian dollars affect an Australian exporter and importer?
Australian dollars is rising that means other currencies are falling against Australian dollar. That means importers need to pay less in terms of foreign currency and exports should hold there exports because they will receive less money in terms of foreign currency.
So the conclusion is if the import and export country's currency is rising then do import and hold exports.
how would a rise in the Australian dollars affect an Australian exporter and importer?
How will a stronger euro affect the following economic agents? A France importer to Japan A German tourist visiting China A Greek bank investing in a Canadian government bond A French exporter to Germany
Explain the different methods by which an importer can make a payment to an exporter. List them in increasing order of risk to the importer and to the exporter.
An Australian company (importer) buys wine from California (US). The next order is worth $2 millions and the payment is due in 180 days. The spot rate is AUD USD 1.30. (a) Does the importer need to buy or sell U.S. dollars to make the payment? What is the exchange of currencies? (b) How many Australian dollars does the company need to make the payment through the spot market today? (c) Is an appreciation of the U.S. dollar in the...
Chapter 6, Question 5-- Choose a product, as well as an importer and an exporter, and determine what would be the ideal Incoterms® rule for a transaction. Make as many assumptions as necessary to justify your decision.
Explain when a country becomes an importer of a good. What about an exporter?
Invoicing in a third currency is possible if a. Importer & Exporter agree b. Impossible c) None of these
You are a U.S. importer desiring to purchase merchandise from an Italy exporter invoiced in Euros, at a cost of €160,000. You will contact your U.S. bank A (where of course you have an account denominated in U.S. dollars) and inquire about the exchange rate, which the bank quotes as €0.6250/$1.00. Consider you accept this price. Bank A then instructs its correspondent bank B in Italy to pay the Italy exporter the amount of the purchase. What will happen to...
A U.S. importer wants to purchase merchandise from a German exporter invoiced in euros at a cost of €569,450. The U.S. importer’s bank quotes an exchange rate of €1.1389/$1.00. After accepting the quote, the bank _______ the importer's account in the amount of _______. Multiple Choice debits; $569,450 None of the options. credits; $648,546 debits; $500,000 credits; €569,450
Which of the following hedging strategies would a business most likely use? Multiple Choice An importer will want to hedge his foreign denominated accounts receivable and will purchase forward contracts to hedge and exposed net asset position An importer will want to hedge his foreign denominated accounts payable and will purchase forward contracts to hedge an exposed net lability position payable and will purchase forward contracts to hedge An exporter will want to hedge his foreign denominate exposed net lability...
. As a US exporter, we have the option of hedging with forwards, options, or not hedging. The size of the transaction is 3.04 million Australian $. The current Exchange Rate is .7400-05 AUDUSD, and the 3 month forward Rate is .7500-05 AUDUSD. Australian Dollar options with an exercise price of .75 sells for a price of $.05 for calls and $.04 for puts. There are 100,000 Australian dollars in 1 option contract. In 3 months when the transaction occurs,...