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Galaxy Glass Ltd (Galaxy) is one of Australia's leading glass manufacturers engaging in the production of float glass, automobile glass and construction glass. Since 2019, Galaxy adopted an aggressive expansion strategy. Galaxy was very active in merging and acquiring companies in the glass production industry. In the past two years, through merger and acquisition, Galaxy controlled more than 10 glass manufacturers in Australia, New Zealand and Japan. Galaxy funded this expansion strategy by borrowings from one Australian bank and one Japanese bank. The Japanese bank can only provide funding in Yen (i.e., the currency).
Problem 1: Based on the background information, identify three inherent risks for Galaxy and explain why you believe they are inherent risks.
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