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    Financial Management in International Business

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    Need some pointers to help in developing a plan of action for the following scenario:

    You are the CFO of a U.S. firm whose wholly owned subsidiary in Mexico manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you that the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. What actions, if any, should you take?

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    As the CFO I would take the following actions:

    ? I would reduce my inventory now and plan to increase it when the Mexican peso depreciates ...

    Solution Summary

    The expert examines financial management in international business.