You are the financial manager of Widget Company of America. The purchasing manager of your company asks for your advice on an upcoming purchase of Dilithium crystals for the next generation widget project. He can buy the crystals from suppliers in four different countries: Spain, South Africa, Egypt, and Ireland. The current exchange rates are as follow:
1 U.S.D. = 125.48 Spain Peseta 1 U.S.D. = 5.79 South Africa Rand
1 U.S.D. = 8.23 Egypt Pound 1 U.S.D. = .592 Ireland Pound
Assuming product quality is the same, transportation costs are the same, and import/export duties are the same, you should advise the purchasing manager to buy the Dilithium crystals from suppliers in which country? _____________________.
This explains the foreign exchange management and selecting right currency for the transaction