To avoid an increase in price because the U.S. dollar has lost value versus the euro, an American importer should require European exporters to quote their products in euros.

Question

Quizplus · Accepted Answer

Quoting products in euros does not protect an American importer from the impact of the U.S. dollar losing value versus the euro; it actually exposes them to currency risk. To avoid an increase in price, they might prefer to lock in exchange rates or use financial instruments like futures or options.

To Avoid an Increase in Price Because the U