Iowa co has most of its business in the united states, Ask an Expert

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Iowa Co. has most of its business in the United States, except that it exports to Portugal. Its exports were invoiced in euros (Portugal's currency) last year. It has no other economic exposure to exchange rate risk. Its main competition when selling to Portugal's customers is a company in Portugal that sells similar products, denominated in euros. Starting today, Iowa Co. plans to adjust its pricing strategy to invoice its exports in U.S. dollars instead of euros. Based on the new strategy, will the company be exposed to exchange rate risk in the future? Briefly explain.

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