Exchange and repatriation of funds risks (give examples)© BrainMass Inc. brainmass.com October 3, 2022, 11:27 pm ad1c9bdddf
Example of Exchange Rate related risks:
Such risks arises due to adverse fluctuations in the exchange rate of two countries. For example, let us take a hypothetical company which exports its products to another country such as India. Now, as we know, the company will receive the payments for its exports in the currency of India,ie, Indian Rupee.
Now, let us assume that the current exchange rate between the US Dollar and Indian Rupee is:
1USD= 45 Indian Rupee.
Thus, the company will receive 1 dollar against every 45 Rupee worth of export. In other words, for every payment of ...
Exchange rate risks arises due to adverse fluctuations in the exchange rate of two countries.