Question No 4:
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?
A. Company A
B. Company B
C. Company C
D. Company D
Answer: B
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