2 Given that Blades will use the receipts from the receivables in Thailand to repay the loan and that Blades plans to remit all baht-denominated cash flows to the UK parent whether it borrows in baht or yen, does the future value of the yen with respect to the baht affect the cost of the loan if Blades borrows in yen?

Blades plc just received a special order for 120 000 pairs of ‘Speedos’, its primary roller blade product.
Ben Holt, Blades’ financial director, needs short-term financing to finance this large order from the time Blades orders its supplies until the time it will receive payment. Blades will charge a price of 5000 baht per pair of Speedos. The materials needed to manufacture these 120 000 pairs will be purchased from Thai suppliers.
Blades expects the cost of the components for one pair of Speedos to be approximately 3500 baht in its first year of operating the Thai subsidiary.