What is meant by foreign exchange risk? What specific problems does foreign exchange present in an organization? How may an organization that needs Euro in 6 months protect itself from currency fluctuations?© BrainMass Inc. brainmass.com December 15, 2020, 9:04 pm ad1c9bdddf
Foreign exchange risk is an inherent risk with all international companies. The problem with companies dealing internationally is that the currencies between countries fluctuate daily. Due to the currency exchange rate fluctuations, companies can either gain or lose depending on the current rates. If a company enters into an agreement for goods or services in another country, the ...
The solution explains foreign exchange risk, the problems that it creates, and how to protect from currency fluctuations.