When purchasing goods or services from an offshore supplier,the most conservative risk management approach is to price in the currency of the supplier.

Question

Quizplus · Accepted Answer

Pricing in the supplier's currency transfers the exchange rate risk from the supplier to the buyer, which is not the most conservative approach for managing currency risk. A more conservative approach would be to price in the buyer's home currency or to use hedging strategies to mitigate exchange rate fluctuations.

When Purchasing Goods or Services from an Offshore Supplier,the Most