* Once your purchase is processed by paypal you will be redirected back to this page and you'll have the option to download the paper. We'll also send the paper to your paypal email address as proof of purchase.Download Paper
Evaluate the foreign exchange exposure aspects of the American Creations investment project on behalf of Bellingham plc. Advise the firm on how their foreign exchange exposure might arise, its possible magnitude, and, how it could be managed should the investment project go ahead.
Your answer should take the form of a written report of approximately 2000 words excluding appendices and the reference list. Deviations from the word count exceeding plus or minus 10% will attract a penalty of 5%.
Foreign Exchange Exposure
Length: 7 pages (2059 Words)
American Creations is a company that has its manufacturing companies operating in America. The company deals with doing complete home furnishes and interior design for wealthy clients in the Caribbean, Miami, Los Angles, and other states. However, the company intends to expand its operations internationally, and Bellingham will be advising them on whether to take the project depending on the risk factors involved.
In this paper, we are going to look at the foreign exchange aspects or risks that a global firm dealing with foreign exchange can occur. We shall further look into how these risks and exposures can be mitigated and finally advice the company whether it can continue with the projects.
Foreign exchange exposure is the risk that a company dealing with exchange transactions will incur. In mot case, it’s the unexpected exchange rate that goes against a company’s expectations that can be termed as a risk. Foreign currency can move to a direction anticipated by a global firm which is detrimental to the firm. Most global firms that deal with currency exchange are at high risks of losing their investments. However, the riskier the business, the more the returns. Global investments in American creation investments projects deal with interior design. Transaction and exchange of different currencies in the world.