1. Grand Leau Ltee (GLL), a French water treatment facility manufacturer, has received a contract to design, manufacture and install a water treatment facility in the Somalian city of Mogadishu. The contract is valued at EUR 1 million and will be paid by the buyer in EUR. GLL has never signed a contract outside of Europe and does not have any strategic partners it can leverage to ensure a successful completion of this contract. After multiple negotiations, the Executive Vice-President of Business Development decided to sign the contract as a first step towards diversifying GLLs market reach. GLL expects to complete the contract without any local partners. Which of the following will have an impact on GLLs cash flow? *

a)2 points

b)Payment via letter of credit which has been secured in an escrow account of a Belgian bank in Antwerp.

c)Fluctuations in the foreign exchange.

d)Exchange controls.

e)Political tensions in Somalia can delay delivery and installation of the water treatment facility.