Quote:
Originally Posted by CorsiHockeyLeague
I don't think this is quite right? They have to report their income in Canadian dollars on their T2.
I guess if they don't ever convert into CAD, the forex thing is less of an issue though, so that makes sense. But presumably they have to, yknow, pay overhead and such... I dunno.
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Yeah, you have to deal with Canadian dollars at the end of the day, so the FX calculations have to be done at some point.
What I'm more getting at is that if you're making your purchases in USD, and, say, you want to make a 20% margin on top of your cost to (hopefully) cover your overheads, making your pricing the same currency as your purchases is easier than constantly re-pricing, changing price tags, etc for everything as the rate fluctuates. You just manage your margins and FX exposure at a higher level, than at an individual product level.