What is meant by foreign exchange risk?
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What is meant by foreign exchange risk? What specific problems does foreign exchange present in an organization?
How may an organization that needs euros in 6 months protect itself from currency fluctuations?
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What is meant by foreign exchange risk? What specific problems does foreign exchange present in an organization?
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foreign exchange risk are risk that is associated with the unpredictable fluctuation of currencies, this affects international businesses (typically in the import/export industry).
Consider this example, I own a factory that produces cars. My factory is in Canada and I sell primarily to the US. To produce cars, I need steel from China, engines from the UK, glass from France, leather from Australia and so on. My client from US has offered me a new deal to buy 12000 cars in the next 6 month ...
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