Nerdy Economics Question for Glenn

[Heavenly Call]

I was using this festival as an example the other day in my AP Macroeconomics class (yay me!) to discuss exchange rates. A student asked "If a band is booked in August of one year, but doesn't get paid until the NEXT September, how do you build exchange rates into the contract?" I think I have an idea, but I'd love to share the real answer from the man himself. I assume each band get's paid in their own currency and if that's the case, Glenn do you just suck it up and cuss when the dollar loses it's value over the year or do you have something in place to counterbalance that? Or do you pay them in USD? I'm very interested in this process if you get a moment.

 

[Metalmilitia2000]

I was using this festival as an example the other day in my AP Macroeconomics class (yay me!) to discuss exchange rates. A student asked "If a band is booked in August of one year, but doesn't get paid until the NEXT September, how do you build exchange rates into the contract?" I think I have an idea, but I'd love to share the real answer from the man himself. I assume each band get's paid in their own currency and if that's the case, Glenn do you just suck it up and cuss when the dollar loses it's value over the year or do you have something in place to counterbalance that? Or do you pay them in USD? I'm very interested in this process if you get a moment.

I would assume that it is in USD. Swordlord has never had a contract from a band, be it a tour or a one off, that I know of, that was paid in anything other than USD. That said, Glenn may have a completely different system.

 

[Harvester]

Flat fee in USD. Deposit paid in advance. The band assumes the fluctuation risk just as they assume the airline price fluctuation based on date.

 

[AMBR]

I was using this festival as an example the other day in my AP Macroeconomics class (yay me!) to discuss exchange rates. A student asked "If a band is booked in August of one year, but doesn't get paid until the NEXT September, how do you build exchange rates into the contract?" I think I have an idea, but I'd love to share the real answer from the man himself. I assume each band get's paid in their own currency and if that's the case, Glenn do you just suck it up and cuss when the dollar loses it's value over the year or do you have something in place to counterbalance that? Or do you pay them in USD? I'm very interested in this process if you get a moment.

Are you writing up a report about this? I'd love to read it. Sounds interesting.

 

[Heavenly Call]

Are you writing up a report about this? I'd love to read it. Sounds interesting.

No, but I should have the students do that (I'm the teacher, not sure if I made that clear). It was part of a larger discussion about increasing international transfers. I'm afraid at a school that's 70% black, not a lot of metal gets discussed - but they were genuinely interested in how this entire process worked. I even pulled up the website and was showing them where the bands were from and everything. It was a good day for me.

Thanks for the answer Glenn, will pass that along. May even create a free response question out of it!

"Nocturnal Rites agrees to play a heavy metal festival in August for a flat fee of (some made up number) USD. If the festival doesn't take place until September of the following year, use the following exchange table of USD to SKR to determine if they will benefit or lose money in terms of Swedish Krona."

 

[miel]

but they were genuinely interested in how this entire process worked. I even pulled up the website and was showing them where the bands were from and everything. It was a good day for me.

Very cool ~ thanks for sharing this!

~Jen

 

[zedowns]

No, but I should have the students do that (I'm the teacher, not sure if I made that clear). It was part of a larger discussion about increasing international transfers. I'm afraid at a school that's 70% black, not a lot of metal gets discussed - but they were genuinely interested in how this entire process worked. I even pulled up the website and was showing them where the bands were from and everything. It was a good day for me.

Thanks for the answer Glenn, will pass that along. May even create a free response question out of it!

"Nocturnal Rites agrees to play a heavy metal festival in August for a flat fee of (some made up number) USD. If the festival doesn't take place until September of the following year, use the following exchange table of USD to SKR to determine if they will benefit or lose money in terms of Swedish Krona."

Would you accept "" as an appropriate answer?

 

[Pellaz]

"Nocturnal Rites agrees to play a heavy metal festival in August for a flat fee of (some made up number) USD. If the festival doesn't take place until September of the following year, use the following exchange table of USD to SKR to determine if they will benefit or lose money in terms of Swedish Krona."

A. Yes
B. No
C. Who's Nocturnal Rites? Have they worked with Young Jeezy?
D. This question is too hard. Where's the beer?

 

[Heavenly Call]

A. Yes
B. No
C. Who's Nocturnal Rites? Have they worked with Young Jeezy?
D. This question is too hard. Where's the beer?

Ha ha!

 

[Heavenly Call]

Would you accept "" as an appropriate answer?

Only if their graphs are drawn correctly!