You are the manager of a company that operates internationally providing agricultural equipment that has been manufactured and assembled in Canada.You have sold your products in the United States for many years and are now looking to enter other markets.
Your company has decided to enter the Argentinean market.You have decided to use two wholesalers,who will distribute to the retail market.The potential size of the market is $10,000,000 USD per year.However,both of your wholesalers will not assume the risk of invoices charging USD and they want at least 60 days before paying.They argue that they will have to give their retailers 60 days to pay and their retailers will only pay them in pesos.Argentina has just come out of a currency crisis and your Canadian bank has warned you of possible severe currency fluctuations.What payment and currency strategy will you suggest to your senior management?

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The Answer of You are the manager of a company that operates internationally providing agricultural equipment that has been manufactured and assembled in Canada.You have sold your products in the United States for many years and are now looking to enter other markets.
Your company has decided to enter the Argentinean market.You have decided to use two wholesalers,who will distribute to the retail market.The potential size of the market is $10,000,000 USD per year.However,both of your wholesalers will not assume the risk of invoices charging USD and they want at least 60 days before paying.They argue that they will have to give their retailers 60 days to pay and their retailers will only pay them in pesos.Argentina has just come out of a currency crisis and your Canadian bank has warned you of possible severe currency fluctuations.What payment and currency strategy will you suggest to your senior management?

You Are the Manager of a Company That Operates Internationally