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

Question

Quizplus · Accepted Answer

By invoicing half in local currency and half in home currency (B), or using a currency basket like the SDR (C), the exporter shares the exchange rate risk with the customer.

An Exporter Can Share Exchange Rate Risk with Their Customers