Part I: Country Analysis: Foreign Exchange Exposure
Using the same business and country for expansion that you chose in Unit III, address the items below. The webpage The World Factbook can be a helpful resource as you are researching.
- Briefly describe regional transaction exposure and approach, and then provide a fictitious example where a manager from your chosen business would use a strategy to address it.
- Briefly describe regional translation exposure and approach, and then provide a fictitious example where your chosen business would translate a financial statement for use in a different nation.
- Briefly describe regional operating exposure, and then provide a fictitious example where your chosen business would match currency streams of cash flows for different countries under its management.
Part II: Country Analysis: Managing Risks
Using the same business and country, address the items below.
- Describe what strategies you would use to manage political risks with global expansion.
- Analyze the use of foreign currency derivatives in general, and then select at least one derivative instrument to address foreign currency risk in the nation into which you are expanding.
- Discuss any additional risks not already covered in previous units.
Your final assignment should be at least three pages in length. Use at least two outside, reputable sources as references to support your research. Adhere to APA Style when creating citations and references for this assignment.