Profit margin on european sales


Please assist with the given problem.

When the dollar was strong, and it could no longer earn a reasonable profit margin on European sales, Osmose International gave up its government permits to sell its chemical wood preservatives in much of Europe. "Why pay for a permit when you can't sell anything there anyway?" explained its president.

Q1. What response do you have for the president of Osmose?

Q2. How might you go about assessing the trade-offs involved for Osmose?

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