Question Details

Reducing Economic Exposure 



1.	Reducing Economic Exposure. UVA Co. is a U.S. based MNC that obtains 40 percent of its foreign supplies from Thailand. It also borrows Thailand- currency (the baht) from Thai banks and converts the baht to dollars to support U.S. operations. It currently receives about 10 percent of its revenue from Thai customers. Its sales to Thai customers are denominated in baht. Explain how UVA Co. can reduce its economic exposure to exchange rate fluctuations.
2.	Reducing Economic Exposure. Albany Corp. is a U.S. based MNC that has a large government contract with Australia. The contract will continue for several years and generate more than half of Albany- total sales volume. The Australian government pays Albany in Australian dollars. About 10 percent of Albany- oper¬ating expenses are in Australian dollars; all other expenses are in U.S. dollars. Explain how Albany Corp. can reduce its economic exposure to exchange rate fluctuations.



Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help