In international trade when a Canadian company sells a product in France, the Canadian company experiences an exchange rate gain if the franc depreciates against the dollar before the Canadian exporter collects on its accounts receivable.

Question

Quizplus · Accepted Answer

The Canadian company would experience an exchange rate gain if the Canadian dollar appreciates against the euro (not franc, as France uses the euro) before collecting on its accounts receivable.

In International Trade When a Canadian Company Sells a Product