[Q] Replace or Not Replace a Nexus 4?

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Ok.I am in a totally crazy situation.When i call somebody they won't be able to hear me and i can't hear them.Basically in a call my mic and ear piece do not work. However if I put it on Speakerphone,both mic and speaker phone works.Also I can't play music through the speakerphone but I can play it through the headsets that I have.I am guessing that this is a problem with the chip which fails to understand when a headset is plugged in and when it is not.
Now my issue.I don't reside in US from where I bought this device. Right now I am using an app called Soundabout that manually changes the switching mechanism.It functions crudely as I have to switch it back every time I get a call. I was thinking of a replacement but here is another problem.
I have a feeling this is a water contact issue.Yesterday I spilled some water on my pants accidently.I immediately took the phone out of my pocket.I have a protective case,so i wasn't very worried about it.But now thinking back this might have been the issue.Now should I RMA it back and what are the chances that they will find this a water issue??Or should i stick with this and give it for repair locally??Local Repair is going to be hard..What should i do??

Your best bet is, if u can RMA it.. then do so. Even if they dont give u a new phone, at least they will repair it.