Consider an Indian bicycle manufacturer which sources only domestic materials and sells exclusively in India. The manufacturer has no foreign-currency receivables or payable in its accounting book. Should this purely domestic manufacturer worry about exchange rate fluctuations? Defend your answer.
Answer: It should not worry about exchange rate fluctuations
Explanation to the above answer
We have been given the inform in the question , that company sources only domestic materials and sells exclusively in India means whatever it purchased ,its from India and even sells in India and it not purchasing or selling the products in oversees market so It should not worry about exchange rate fluctuations
