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A UK company has just despatched a shipment of goods to sweden. The sale will be invoiced in swedish korner and payment is to be made in 3 months time. Neither the UK exporter nor the swedish importer uses the forward foreign exchange market to cover exchange risk
If the pound sterling were to weaken against swedish korner what would be the foreign exchange gain or loss effects upon the Uk exporter and the Swedish importer
Sir answer is that Uk exporter will face gain and Swedish importer will have no effect
Sir I don’t understand that how Uk exporter will face gain , won’t it suffer loss?
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