Which of the following would most likely be an effective currency risk strategy for EZ Lawn management?
A) increase prices of EZ Lawn products to cover currency issues
B) trade currency using the websites of investment banks
C) use a spot rate for long-term transactions between suppliers
D) monitor the economic trends of the supplier nations
Question 2
In order to eliminate the need for the Asian supplier to borrow money, what could ABC do?
A) renegotiate with the hotel chain to try to get them to accept a smaller order size of lamps
B) advise the shade manufacturer that it is okay to use lower-cost lamp shade material
C) ask the hotel chain if they are willing to extend the manufacturing time specified in their purchase agreement
D) make incremental payments to the supplier as lamp shades are shipped to ABC
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