26 Invoicing policy to reduce exposure. Blackstone is a UK firm that exports its products to Canada. It faces competition from many firms in Canada. Its price to customers in Canada has generally been lower than those of the competitors, primarily because the British pound has been strong. It prices its exports in Canadian dollars, and then converts the Canadian dollar receivables into pounds.

All of its expenses are in the UK and are paid for with pounds. It is concerned about its economic exposure. It considers a change in its pricing policy, in which it will price its products in pounds instead of Canadian dollars. Offer your opinion on why this will or will not significantly reduce its economic exposure.