An american exporter of various components

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Reference no: EM132102839

An American exporter of various components that are used in a project expects to supply them for the construction of a bridge in a European country over the next 6 months. The transaction for these exports may be quoted for in either American dollars or the Euro. The current value of the goods is $50,000 and the quote may be in dollars or the current equivalent Euros. The exporter and most banks anticipate that the dollar will depreciate over the next 6 months. Given this reliable expectation, should the transaction be done (and quoted for) in Euros or the Dollar, by the American exporter.

Please answer with and explain your recommendations.

Reference no: EM132102839

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