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The large influx of shrimp imports into the United States from Asia and Latin America depressed wholesale prices by more than 40 percent between 1997 and 2002. Despite such lower prices, shrimp entrees at some sea food restaurants in the United States rose by about 28 percent during the same period. Discuss why prices (shrimp prices at sea food restaurants) are not aligned with costs. 2) How does an exporter protect against foreign exchange fluctuation? What contract clauses can be included to limit such risk that could adversely affect a company's future receipts?

The large influx of shrimp imports into the United States from Asia and Latin America depressed wholesale prices by more than 40 percent between 1997 and 2002. Despite such lower prices, shrimp entrees at some sea food restaurants in the United States rose by about 28 percent during the same period. Discuss why prices (shrimp prices at sea food restaurants) are not aligned with costs. 2) How does an exporter protect against foreign exchange fluctuation? What contract clauses can be included to limit such risk that could adversely affect a company's future receipts?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1) The large influx of shrimp imports into the United States from Asia and Latin America depressed wholesale prices by more than 40 percent between 1997 and 2002. Despite such lower prices, shrimp entrees at some sea food restaurants in the United States rose by about 28 percent during the same period. Discuss why prices (shrimp prices at sea food restaurants) are not aligned with costs. 2) How does an exporter protect against foreign exchange fluctuation? What contract clauses can be included to limit such risk that could adversely affect a company's future receipts?

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