Consequence of foreign exchange rate risk
What are consequence of foreign exchange rate risk and how do this risk be mitigated?
Expert
The level of uncertainty Foreign exchange risk is that a company must manage for changes in foreign exchange rates which will badly affect the money the company receives for goods and services over a period.
Let’s take an example a company sells goods to a foreign company as they wanted to move the goods same day but will not receive payment for numerous days, weeks or months. During this period, the exchange rates varies. At the time of settlement when the foreign company pays to the domestic company for the goods, the rates may have moved to a level that is less than what the company expected. Resulting the company may suffer a huge loss or the profits may erode.
To manage or minimize the risk, companies enter into contracts to purchase foreign currency at a specified rate. This will permits to the companies to minimize the uncertainty of the risk so that they can accordingly price their products.
I have a problem in economics on implicit costs incurred by the firm. Please help me in the following question. Each and every implicit cost incurred by the firm are: (1) Opportunity costs for the owner-supplied resources. (2) Explicit costs of each a
Short-run supply curve of a purely competitive firm is the positively sloped segment of: (a) its long run sales revenue curve. (b) its marginal fixed cost curve. (c) its average profits curve. (d) its average total cost curve. (e) its MC curve above t
Key questions in evaluating a research report: In brief, there are five key questions you, as a consumer of analytical work, should ask yourself as you are evaluating a research report. 1. What is the purpose of th
A change in the price of a resource will cause a modification in the: (w) demand for the resource. (x) supply of the resource. (y) quantity demanded of the resource. (z) demand for the good the resource produces. H
I have the quantity functions of demand and supply for two different goods, and I have to find the equilibrium of both the goods. Would I make all four functions equal to each other to find the equilibrium for the two goods? Or am I supposed to do something else?
The one-year old car tends to sell for much less than the brand latest car. A part of the reason is that: (i) Sellers and buyers have similar information regarding used cars as they do latest cars. (ii) Buyers and sellers both encompass more information regarding new
Utility: The wants satisfying power of a commodity is termed as utility.
How much loss can an industry bear? Answer: An industry can bear losses up to its total fixed costs.
While the temperature drops by 102o F to 54o F, just diehard surfers buy surf boards and sales plummet by 56,000 down to 14,000 monthly. For surf boards the temperature elasticity of the demand is: (w) 0.975. (x) 1.95. (y) 3.90. (z) -1.95. <
The Disadvantaged groups have historically been pressured in the direction of low wage jobs in a process termed as: (i) Occupational crowding. (ii) Labor staggering. (iii) Systemic discrimination. (iv) Reverse favoritism. (v) Nepotism. Discover Q & A Leading Solution Library Avail More Than 1437468 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1924027 Asked 3,689 Active Tutors 1437468 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
18,76,764
1924027 Asked
3,689
Active Tutors
1437468
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!