00:01
In this question, the motive is to find the impact on the exporters revenue in terms of the british pound.
00:08
So the value of price, that is the agreed upon price, is equal to $500 ,000.
00:16
So let's write over here.
00:18
And now the initial exchange rate will be that one pound is equal to, let's write over here as $1 .40.
00:28
Dollars so it will be usd then the value of revenue in terms of pounds will be here so it is revenue and this value will be equals to the total revenue divided by exchange rate so total revenue is 500 ,000 dollars and then in the denominator we will be having 1 .40 and here it is dollars now in the denominator it will be the pounds, that is g b, p.
01:01
So the value of revenue will be equals to, it is here 357, then it is comma 142 .86 in terms of pounds.
01:14
Now we will calculate the revenue in terms of the revised rate.
01:19
So here, this is the revenue for the first scenario, that is before the revised rate.
01:25
Or we can say with the initial exchange rate...