Foreign Currency Economic Exposure?

Question

Jaguar is owned by Ford Inc of the United States. Jaguar manufactured luxury cars in the UK but its sales are predominately in the US. Sales to the US are currently invoiced in US dollars.

Explain the term foreign currency economic exposure, describe the foreign currency exposures faced Jaguar and discuss whether Jaguar should set the invoice prices of its cars for export in £s or foreign currency terms ($s when selling in the US).

Thanks, I really need help with this or I'm gonna get killed.

Answer 1

well as Dolar is weaker the Pound is getting stronger so they should stay with Pounds they will make more money that way !

Answer 2

In short, my best guess stems from this following point:  If you were a country totting up your GDP figures, is it not a reasonable guess to say you support your own currency?  Operating in another currency reduces your ‘groups’ GDP accumulation.