Question
TechQLD is an Australian business that has been exporting successfully to China for many years. To enhance this trading relationship, TechQLD has been pricing all
TechQLD is an Australian business that has been exporting successfully to China for many years. To enhance this trading relationship, TechQLD has been pricing all its exports in Chinese RMB rather than in Australian dollar. In recent months, the Australian dollar has been strengthening in value against the Chinese RMB. If the Australian dollar continues to strengthen against the Chinese RMB, what are the implications for both TechQLD and its Chinese customers in relation to their future export transactions? Discuss a relevant strategy that TechQLD can use to manage transaction risk.
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