Discuss the concept of foreign exchange and why companies hedge certain transactions?© BrainMass Inc. brainmass.com June 4, 2020, 2:29 am ad1c9bdddf
Discuss the concept of foreign exchange and why companies hedge certain transactions?
The likelihood that a business may lose funds because of changes in the foreign exchange rate is called Foreign Exchange Exposure. A multinational firm's profitability, net cash flow, and market value can change because of a change in exchange rates.
Financial manager spend time measuring foreign exchange exposure and attempting to reduce it.
There are ...
Discussion Question - Foreign Exchange and Hedging