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Chapter 16




               Chapter 12







                   Example 1




                   Here are three separate scenarios for UK based companies.


                   Assume the spread in each scenario is GBP1 = USD 1.3520 – 1.2520.

                   Give all answers the nearest whole number.

                   (a)  X Ltd exports to New York, it has recently made a sale valued at
                         $125,000. Payment will be received immediately after delivery.

                         What will the GBP value received be?

                   (b)  Y Ltd regularly purchases from a supplier in Boston and pays on delivery.
                         They are expecting a delivery later today, valued at $250,000.

                         What is the cost in GBP of this delivery?

                   (c)  Z Ltd is looking to buy a product, that is currently priced at £30 in the UK,
                         from a supplier in Florida.

                         What price would they expect to pay in USD?




































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