Contract Re-Negotiation Strategies for Value Creation Assessment Assignment 2 Your company is in the export/import business. Two years ago, you signed a contract with your European counterpart, where the Euro to SAR exchange rate was 1 Euro = 4.00 SAR. Now, the exchange rate is 1 Euro = 4.50 SAR As you are the importer of the products from Europe and the payment currency you both agreed in the contract was in Euro, that exchange rate is not only leading to less profits but also starting to affect your cash flows.

How would you deal with that inconvenience and re-negotiate the contract, noting that you are keen on maintaining the business with that European counterpart ?