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Transaction exposure.International Products, Inc. has ordered 16000 leather coats from Argentina for delivery in 3 months. The contracted cost of a coat is 147 pesos.
Transaction exposure.International Products, Inc. has ordered 16000 leather coats from Argentina for delivery in 3 months. The contracted cost of a coat is 147 pesos. International Products will pay for the coats upon delivery. The current indirect exchange rate is $1 for 1.3356 pesos. The anticipated inflation rate is 4.1 % in the United States and in 8.5% Argentina. In U.S. dollars, how much will 16000 the leather coats cost International Products at delivery?
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