For an exporter,there is a strategic advantage in quoting prices in the importer's currency and reducing the currency fluctuation risk with a forward market hedge or a money market hedge.

Question

Quizplus · Accepted Answer

Quoting prices in the importer's currency can reduce the risk of currency fluctuations, as it allows the importer to know the exact price they will pay in their own currency. Additionally, using a forward market hedge or a money market hedge can further reduce the risk of currency fluctuations and provide a strategic advantage to the exporter. By doing so, the exporter can be more competitive in the market and potentially increase their profits.

For an Exporter,there Is a Strategic Advantage in Quoting Prices