they had no latitude to increase their prices. The agreement did not include any provisions to renegotiate the contract if faced with such a dramatic shift in the value of the rate of currency either, which was another serious drawback.
A negotiator who conducts an international negotiation has 4 choices to make regarding
foreign currency when concluding an international joint venture. 1) They can both share the
risk. 2) The foreign partner assumes the risk. 3) Your side assumes the risk. 4) One or both
parties stipulate in the contract that the currency denomination is an area open to
renegotiation, allowing for a certain percentage of rate fluctuation to occur.
Always remember that the longer the lifespan of the agreement - the greater the risk.