Hello John,
- "Invoicing in dollars will eliminate all foreign exchange risk that a company is exposed to"
1. In the kit the statement is regarded as False. Could you please explain why so?
- When we invoice in the home currency, we don't suffer from exchange gain or loss; therefore eliminate the risk.
Thanks
Ask the Tutor ACCA FM
foreign exchange risk
5y ago#1It eliminates the transaction risk but it does not eliminate the economic risk.
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