Global operations-implications of change in exchange rate

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The CFO of a company with global operations has a forecast that indicates that the euro will depreciate in value against the dollar by 30% over the next year. The company has significant operations in the Euro Zone, including a wholly owned subsidiary that manufactures components for products that are assembled in the US. The subsidiary is financed with bank borrowings in the US. Discuss the implications of this change in exchange rate and what actions can be taken and why.

Reference no: EM131030191

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