Problem
What is foreign exchange risk? What causes it? Create?an example using the info below:
US?exporter is John Deere. Nigerian importer is "Tata Nigeria" (a lawn equipment seller). Product is lawn mowers. 1 USD = 415 Nigerian Naira (June 25, 2022)
Identify and?explain five techniques to mitigate foreign exchange risk. Discuss how each?of these?techniques?mitigates?foreign exchange risk. Suppose a company wants to mitigate its foreign exchange risk for an export sale, identify three criteria that a company might consider?to decide?on the best technique to use.