Hedge receivables and payables with future contracts

Assignment Help Business Management
Reference no: EM132845982

Choose a U.S. company with a foreign subsidiary on which to base your discussion. Reflect on the company, the concepts in the unit, and the current economic environment in which the subsidiary operates, and consider the current and historical exchange rate.

Imagine that you are a manager at the company you have chosen to study. You have been tasked with management of exchange rate exposure. Pick two of the prompts below to respond to in your discussion.

Explain how the U.S. corporation could hedge the receivables and payables with future contracts. Would this be necessary for your company?

Consider the spot rate of the foreign currency and the deposit interest rate of the foreign country. Based on this information, would you implement a money market hedge? Why, or why not?

If the subsidiary's foreign currency depreciates against the dollar this year, how can the company hedge its translation exposure?

How can the company reduce its economic exposure to exchange rate fluctuations in the foreign currency?

Reference no: EM132845982

Questions Cloud

Determine the average rate of return on the equipment : Average Rate of Return-Cost Savings - Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment
What journal entry would the company make on the day : On December 31, 2018, ABC company sold its equipment for cash for $10,000. What journal entry would the company make on the day
How much will you have in the account after four years : If you do not make any more investments and do not withdraw any money from the account, how much will you have in the account after 4 years
Discuss the effects of cost sharing : Discuss the Effects of Cost Sharing and the effects upon medical services and healthcare quality. Why is customer service so important?
Hedge receivables and payables with future contracts : Explain how the U.S. corporation could hedge the receivables and payables with future contracts. Would this be necessary for your company?
Culture is part of all organizations and social systems : Culture is part of all organizations and social systems exist in any company. describe how social system operates and how people contribute to or taint system
Methods and quantitative research : Methods section to review and evaluate the methods of quantitative research. Identify the hypothesis or hypotheses? What is the null hypothesis?
Bounds of rationality and awareness : you have been introduced to the bounds of rationality and awareness, the pitfalls of overconfidence and other common biases,
Management performance- powerpoint slides : Explain the importance of performance management and why your organization values performance management.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd