Rosen Corporation sells both home and in foreign countries
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Rosen Corporation sells both home and in foreign countries. The firm finds that a change in the exchange rate has a greater impact on cash outflows than on cash inflows. In order to reduce economic exposure, what would you recommend regarding the volume of sales to foreign countries? Explain the reason for your recommendation.
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Rosen Corporation sells both home and in foreign countries. The firm finds that a change in the exchange rate has a greater impact on cash outflows than on cash inflows. In order to reduce economic exposure, what would you recommend regarding the volume of sales to foreign countries? Explain the reason for your recommendation.
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I would recommend the following. Stop exporting so much in the second and third world countries which have a tendency to have currency valuation" bounce up and down" all over the place quite often (because political and or economic instability, inflation, poor monetary policy etc.). I would also "hedge my bets" by exporting to as many countries as I can globally (as long as it's profitable (with an emphasis on those ...
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