Which is used to partially or fully transfer foreign exchange risk to the importer?
A) mixed currency invoicing
B) price escalation clause
C) leads
D) lags

Question

Quizplus · Accepted Answer

The price escalation clause is used to transfer foreign exchange risk to the importer. This clause allows the exporter to adjust the contract price to reflect changes in exchange rates between the time the contract is signed and the time the payment is received. By doing so, the exporter can partially or fully transfer the foreign exchange risk to the importer.

Which Is Used to Partially or Fully Transfer Foreign Exchange