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A long term contract for a Belgium importer stipulates that: importer of wine in Belgium buys 1 0 , 0 0 0 cases of Romanian
A long term contract for a Belgium importer stipulates that: importer of wine in Belgium buys cases of Romanian white wine and pays the Romanian winery in Euros. The Belgium importer then sells the wine to a Swiss importer and is paid in Swiss Francs.
Details:
Romanian wine costs Romanian Leu per case.
Belgium importer now exports the wine to Swiss for Swiss Francs per case.
Total handling, insurance, and transport costs are Euros per case
Euro Romanian Leu
Euro Swiss Franc
Would the Belgium firm earn a profit or loss on this deal if the transaction was completed today with current data?
Indicate profit or loss by placing either word here:
amount of profit or loss from above use a for profit and for loss
Show work here:
Which firm or firms, Belgium, Romanian, andor Swiss are at foreign exchange risk of gaining or losing if this deal is repeated later and exchange rates have changed?
List here:
If the exchange rate have now changed to those listed below, calculate the current status for the Belgium firm:
Euro leu
Euro Swiss Francs
How does that change the Belgium importexporters profitability?
Profit or loss is now how much answer hereuse for profit and for loss
Show work clearly here:
How has the Romanian exporters condition changed due to the change in the exchange rate described in # above? ne sentence
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