This is a German fim exporting respirators to the Croatian hospitals during the pandemic through a Croatian distributor. Invoice Price of a Respirator of a German Exporter € 320 17,500 Sales Volume Spot Exchange Rate (HRK/€) Risk Sharing Band (HRK/€) By equal risk sharing of both parties beyond the band, calculate the cost of all exports of respirators to the Croatian distributor on the Croatian Kuna (HRK) basis and the sales revenue of the German firm on the Euro basis a) at the spot exchange rate. b) at the exchange rate (HRK/€)= 7.15 c) at the exchange rate (HRK/E)= 6.57 d) at the exchange rate (HRK/E)= 8.93 e) which party does benefit in these cases? 7.60 6.84-8.36
This is a German fim exporting respirators to the Croatian hospitals during the pandemic through a Croatian distributor. Invoice Price of a Respirator of a German Exporter € 320 17,500 Sales Volume Spot Exchange Rate (HRK/€) Risk Sharing Band (HRK/€) By equal risk sharing of both parties beyond the band, calculate the cost of all exports of respirators to the Croatian distributor on the Croatian Kuna (HRK) basis and the sales revenue of the German firm on the Euro basis a) at the spot exchange rate. b) at the exchange rate (HRK/€)= 7.15 c) at the exchange rate (HRK/E)= 6.57 d) at the exchange rate (HRK/E)= 8.93 e) which party does benefit in these cases? 7.60 6.84-8.36
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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