Best to manage this risk under these circumstances

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Reference no: EM132226423

Suppose a small manufacturing business purchases 90% of its raw materials and supplies from Japan. It is a very specialized business and has no place other than Japan to purchase its materials. Thus, if the value of the Japanese currency goes up compared to the dollar, profit margins will go down since it will cost the company more to purchase its supplies. What methods do you think would be best to manage this risk under these circumstances?

Reference no: EM132226423

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