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An Indonesian restaurant chain borrowed 1 million US dollar from a US bank, converted the dollars to the Indonesian Rupiah, and opened some more outlets
An Indonesian restaurant chain borrowed 1 million US dollar from a US bank, converted the dollars to the Indonesian Rupiah, and opened some more outlets in Jakarta with the aim of expanding sales to its local customers in Jakarta. The company imports ingredients from Hong Kong and pays the price in the Hong Kong dollar. Later, the US dollar appreciated sharply against the Indonesian Rupiah. How did this exchange rate movement affect the profit of this Indonesian restaurant? Briefly explain. (about 50-80 words)
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