Almira, Inc. is a U.S.-based manufacturer and wholesaler. On 10/15/20x1, Almira made its first international sale. They sold $450,000 of products to a non-U.S. customer. Almira, Inc. agreed to allow the customer to pay for the purchase in its own currency, the FC. To avoid a penalty, the foreign buyer must make payment to Almira by February 2, 20x2. At the time of the sale, the FC/$ spot rate was FC1.97=$1

Almira, Inc. has a December 31 year-end. At 12/31/20x1, the foreign currency spot rate was FC1.95 = $1.

Required: For Almira, Inc.,

1. For Almira, Inc.s foreign customer, explain the type of foreign currency risk the s/he accepts relating to their purchase from Party Pop, including the implications of appreciation or depreciation of their currency relative to Party Pops currency, the U.S. dollar