The British trading company Heseltine Ltd. exhibits the following sales revenue pattern (in thousands of British pounds):

200920102011

Sales revenue23,50028,65033,160

Required:

a.)Perform a convenience translation into U.S. dollars for each year given the following exchange rates:

2009

$2.10 = 1

2010

$2.20 = 1

2011

$1.60 = 1

b.)Compare the year-to-year percentage changes in sales revenues in pounds and in U.S. dollars. Do the two time series move in a parallel fashion? Why or why not?

c.)What method would minimize the effect of exchange rate changes on foreign currency trend data?