Explore BrainMass

Foreign Exchange Question

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

A US Importer owes a Belgian Company ? 500,000 payable 30 days from today, expects that the US $ will weaken during this period.
a‐ What would you advise the importer to do?
b‐ What would happen to the profits of the US company if the $ were to strengthen during this period?

Can anyone help with this problem?

© BrainMass Inc. brainmass.com September 19, 2018, 4:55 am ad1c9bdddf - https://brainmass.com/economics/finance/218190

Solution Preview

Hi there,

Here are your answers:

a) I would advise the importer to pay their bill as soon as possible. The longer that they wait to ...