Manage transaction risk

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Reference no: EM132950138

XYZ is an Australian business that has been exporting successfully to the US for many years. To enhance this trading relationship, XYZ has been pricing all its exports in US rather than in Australian dollar. In recent months, the Australian dollar has been strengthening in value against the US dollar. If the Australian dollar continues to strengthen against the US dollar, what are the implications for both XYZ and its US customers in relation to their future export transactions? Discuss how XYZ can use 'leading' and 'lagging' strategies to manage transaction risk.

Reference no: EM132950138

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