Jan 24, 2018 sample paper 2

What is the net profitability effect on the Mexican firm?

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BUS470 M3A1 – Discussion Question

Assignment 1: Discussion Question

The Mexican ceramics folk-art firm signs a contract for the Mexican firm to deliver 1500 pieces of artwork to an Italian firm within the next 120 days. The contract is denominated in pesos. During this time the Mexican peso strengthens against the euro. What is the net profitability effect on the Mexican firm? What international market concept is demonstrated in this example? Discuss the risks associated with changing exchange rates and international commerce and provide a scenario demonstrating these risks.

BySaturday, May 21, 2016 respond to the discussion question assigned by the faculty. Submit your response to the appropriateDiscussion Area. Use the sameDiscussion Area to comment on your classmates’ submissions and continue the discussion untilWednesday, May 25, 2016. Comment on how your classmates would address differing views.

**** Please provide two questions identify methods or suggetions for addressing differing views.******

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