John Browne, a junior buyer for a corporation, is analysing the global supply market before...

Vendor: CIPS
Product: L4M5
Update on: Jul 30, 2025
Questions: 317

CIPS L4M5 Question Answer

John Browne, a junior buyer for a corporation, is analysing the global supply market before undertaking negotiations and is wondering whether foreign exchange rates are important to factor into his research. Should John consider the foreign exchange rates?

No, exchange rates only apply to the national economy

No, as they only affect the bank's interest rates for loans

Yes, as they can affect profit and turnover

Yes, only if the organisation can handle foreign currencies in their accounts