An exporter can shift exchange rate risk to their customers by
A)invoicing in their home currency.
B)invoicing in their customer's local currency.
C)splitting the difference,and invoicing half of sales in local currency and half of sales in home currency.
D)invoicing sales in a currency basket such as the SDR as the invoice currency.

Question

Quizplus · Accepted Answer

Invoicing in their home currency shifts the exchange rate risk to the customers, as they are the ones who will have to deal with the currency conversion and any fluctuations in exchange rates.

An Exporter Can Shift Exchange Rate Risk to Their Customers