Description
Multinational companies (MNC) face various risks because of anticipated or unanticipated changes in the exchange rates. It is important for MNCs to understand these risks so that they can find ways to reduce the impact that changes in exchange rates have on the cash flow of the company.
Prior to beginning work on this discussion forum,
Read Chapter 10 of the textbook.
Visit the US Dollar Exchange Rates TableLinks to an external site., and pick a country that starts with the first letter of your first name.
Review that country’s current exchange rate.
Review that country’s exchange rate from 2 years ago. To do this, select the “Historic Lookup” tab, then adjust the date and select Go.
In your initial discussion forum post,
Report your selected country’s current exchange rate and the exchange rate from two years ago.
Explain why it has gotten cheaper or more expensive to do business in your selected country as a result of the change in exchange rate.
Discuss the types of risk an MNC would be exposed to when doing business in your selected country.
Discuss one of the four methods of currency translation discussed in Chapter 10.
