Risks of adverse exchange rate fluctuations
What are the risks of adverse exchange rate fluctuations?
Expert
The risks of adverse exchange rate fluctuations are as mentioned below:
1. The instability of exchange rates very much complicates the subject of geographic cost benefits. Currency exchange rates often change as much as 20 to 40 % annually. Changes of this magnitude can either totally clean out a country’s low- cost benefit or transform a former high-cost place into a competitive-cost place.
2. Declines in the worth of the United States dollar against outside currencies decrease or eliminate whatever cost benefit outside manufacturers might have over the U.S. manufacturers and can even prompt outside companies to set up manufacture plants in the United States.
3. Currency exchange rates are rather random, swinging first one method then another method, so the competitiveness of any company’s facilities in any country is partially dependent on whether exchange rate varies over time have a unfavorable or favorable cost impact.
4. Companies making products in one country for export to outside countries always increase in competitiveness as the currency of that county grows weaker. Exporters are drawback when the currency of the country where products are being manufactured grows powerful.
What are linking a company’s strategy to its ethical standards and core values?
Briefly illustrate the term Accountable marketing?
How can we classified Managerial Roles?
As a wholesaler what are the dilemmas that they would face in making sure the commitment to the retail suppliers?
What do you mean by the term Maturation stage of a PLC phase?
What is the Bureaucratic Approach of organizational behavior to the present age? Briefly describe it.
What do you mean by the term Commitment principle which is the part of goal setting? Explain briefly?
ERG theory of motivation? Discuss its merits and limitations
What are the two factors which can impact on the choice shift?
What do you mean by the transmitting the message which is one of the steps of Communication process?
18,76,764
1943869 Asked
3,689
Active Tutors
1449184
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!