CHAPTER 10 QUIZ 26
Invoicing Policy to Reduce Exposure. Celtic Co. is a U.S. firm that exports its products to
England. It faces competition from many firms in England. Its price to customers in England has
generally been lower than those of the competitors, primarily because the British pound has been
strong. It has priced its exports in pounds, and then converts the pound receivables into dollars.
All of its expenses are in the U.S. and are paid with dollars. It is concerned about its economic
exposure. It considers a change in its pricing policy, in which it will price its products in dollars
instead of pounds. Offer your opinion on why this will or will not significantly reduce its
economic exposure.
USA 
India