Problem 1: If you were looking to operate an offshore venture in the UK to manufacture and sell smart phones, what type of risks would you face and why? Name at least 4 different risks and explain in one or two lines for each.
Problem 2: A Canadian company sold 1000 computers for the price of $1000 CND to an Indian company when exchange rate was 1 CND= 65 R. invoice is due after 90 days and when Indian company is about to pay the invoice, exchange rate s 1 CND= 75 R. How much is the loss for Indian company? What are the methods to avoid this risk?