The first exporting contract for A. Wright Seating Ltd is with a trading company based in New Zealand. It has come as a result of a letter from an ex-employee who moved to New Zealand four years ago. Although this is the first overseas contract and is priced to be very profitable, Peter Wright, the Managing Director, doesn’t see why the company cannot export to other countries as well as New Zealand. His biggest worry is pricing the products taking into account the exchange rate, a subject that he has no knowledge of at all. The only exchange rate dealings that Peter has had have been for the importing of assembly parts from Italy and, in any case, the currency is a relatively stable Euro. He asks you to write a briefing, explaining the factors that affect exchange rates and the impact that exchange rates may have on A. Wright Seating Ltd.
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