Sharing currency fluctuation risk with a supplier works best on items that have a set delivery date such as with capital equipment.

Question

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Sharing currency fluctuation risk with a supplier is beneficial when there is a set delivery date as it allows both parties to plan ahead and mitigate potential losses or gains due to currency fluctuations. This strategy may not be as effective for items with fluctuating delivery dates or goods that are in constant demand as the price may need to be adjusted frequently.

Sharing Currency Fluctuation Risk with a Supplier Works Best on Items