Companies A, B, C and D:
• are based in a country that uses the K$ as its currency.
• have an objective to grow operating profit year on year.
• have the same total levels of revenue and cost.
• trade with companies or individuals in the eurozone. All import and export trade with companies or individuals in the eurozone is priced in EUR.
Typical import/export trade for each company in a year are as follows:
Which company's growth objective is most sensitive to a movement in the EUR/K$ exchange rate?
Submit