X exports goods to customers in a number of small countries Asia.

X may be able to sell the receipts forward.

If the proposal is adopted, X will have a lower effective sales price per unit due to exchange rate fluctuations.

X will know advance the amount of home currency it will receive for the export sales.

The overseas customers may have difficulty obtaining X's name currency with which to make the purchases, so the Sales Director’s proposal may increase sales.

The customer will tear the foreign exchange risk and will only buy from X if they are prepared to accept this.