What is the net profitability effect on the Mexican firm?

behavioral finance theories/ global strategy formation

 

 

Must be original work, using APA guidelines with citation and reference. Also must be two strong paragraphs long. Due Friday January 22, 2016

 

The Mexican ceramics folk-art firm signs a contract for the Mexican firm to deliver 1500 pieces of artwork to an Italian firm within the next 120 days. The contract is denominated in pesos. During this time the Mexican peso strengthens against the euro. What is the net profitability effect on the Mexican firm? What international market concept is demonstrated in this example? Discuss the risks associated with changing exchange rates and international commerce and provide a scenario demonstrating

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