Currency Exchange Risk Management DB
Within the Discussion Board area, write 350–450 words that respond to the following questions with your thoughts, ideas, and comments.
International companies face multiple types of risk related to international finance. Discuss the impact of the following types of risk on a multinational company:
- Currency exchange risk
- Financial market stability risk
- Foreign taxes and regulation risk
Answer Preview
Currency exchange risk is a financial risk that tends to exist in the situation where a financial transaction of a company has been denominated in a currency which is very much different from the base currency of the organization. Currency exchange risk has been determined by many economists to have an effect and impact on multinational companies. This type of risk tends to affect the financial structure, cash…
(411 Words)