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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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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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