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This is a German firm exporting C vitamin food supplements to the Algerian customers through an Algerian distributor. By equal risk sharing of both parties
This is a German firm exporting C vitamin food supplements to the Algerian customers through an Algerian distributor. By equal risk sharing of both parties beyond the band, calculate the cost of all exports of C vitamin supplements to the Algerian distributor on the Algerian Dinar (DZD) basis and the sales revenue of the German firm on the Euro basis a) at the spot exchange rate. b) at the exchange rate (DZD/)=156.25 c) at the exchange rate (DZD/)=171.53 d) at the exchange rate (DZD/)=125.65 e) which party does benefit in these cases? (24 points)
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