This is a German fim exporting respirators to the Croatian hospitals during the pandemic through a Croatian distributor. Invoice Price of a Respirator of a German Exporter € 320 17,500 Sales Volume Spot Exchange Rate (HRK/€) Risk Sharing Band (HRK/€) By equal risk sharing of both parties beyond the band, calculate the cost of all exports of respirators to the Croatian distributor on the Croatian Kuna (HRK) basis and the sales revenue of the German firm on the Euro basis a) at the spot exchange rate. b) at the exchange rate (HRK/€)= 7.15 c) at the exchange rate (HRK/E)= 6.57 d) at the exchange rate (HRK/E)= 8.93 e) which party does benefit in these cases? 7.60 6.84-8.36

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter6: Managing In The Global Economy
Section: Chapter Questions
Problem 7E
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This is a German firm exporting respirators to the Croatian hospitals during the pandemic through a
Croatian distributor.
| Invoice Price of a Respirator of a German Exporter
Sales Volume
Spot Exchange Rate (HRK/€)
Risk Sharing Band (HRK/E)
By equal risk sharing of both parties beyond the band, calculate the cost of all exports of respirators to
the Croatian distributor on the Croatian Kuna (HRK) basis and the sales revenue of the German firm
on the Euro basis
a) at the spot exchange rate.
b) at the exchange rate (HRK/€)= 7.15
c) at the exchange rate (HRK/E)= 6.57
d) at the exchange rate (HRK/E)= 8.93
e) which party does benefit in these cases?
€ 320
17,500
7.60
6.84-8.36
Transcribed Image Text:This is a German firm exporting respirators to the Croatian hospitals during the pandemic through a Croatian distributor. | Invoice Price of a Respirator of a German Exporter Sales Volume Spot Exchange Rate (HRK/€) Risk Sharing Band (HRK/E) By equal risk sharing of both parties beyond the band, calculate the cost of all exports of respirators to the Croatian distributor on the Croatian Kuna (HRK) basis and the sales revenue of the German firm on the Euro basis a) at the spot exchange rate. b) at the exchange rate (HRK/€)= 7.15 c) at the exchange rate (HRK/E)= 6.57 d) at the exchange rate (HRK/E)= 8.93 e) which party does benefit in these cases? € 320 17,500 7.60 6.84-8.36
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