Would you use financing in currency to offset receivables

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Reference no: EM132763383

Q1. Running Your Own MNC - Ensuring Payment for Exports

Explain how your business could ensure payment for the products that you are exporting to a foreign country.

Q2. Running Your Own MNC - Financing in Foreign Currency

Given that your business has receivables in a foreign currency, you may want to consider financing in that same foreign currency to offset the exposure. Compare the recent interest rate of the foreign currency of concern to the U.S. interest rate: Is the foreign interest rate typically higher or lower than the U.S. interest rate? Would you use financing in that currency to offset receivables? Explain.

Explain how you could use foreign financing for your business in a manner that would reduce your exposure to exchange rate risk. Be specific.

Reference no: EM132763383

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