Explore BrainMass

Explore BrainMass

    This post addresses issues related to foreign exchange risk.

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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 March 7, 2023, 12:33 pm ad1c9bdddf

    Solution Preview

    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 ...

    Solution Summary

    The solution explains foreign exchange risk, the problems that it creates, and how to protect from currency fluctuations.