Our Services

Get 15% Discount on your First Order

[rank_math_breadcrumb]

Hello need help with an assignment: 4-2 Assignment: Foreign Exchange Overview Foreign exchange impacts the profitability of transactions in international markets. It can turn a profitable business in

Hello need help with an assignment: 

4-2 Assignment: Foreign Exchange

Overview

Foreign exchange impacts the profitability of transactions in international markets. It can turn a profitable business into one that loses money and can turn an unprofitable business into one that makes money.

In this assignment, you will analyze the impact of foreign exchange on different business scenarios and present your findings in a short business memo.

Scenario

You manage the international business for a manufacturing company. You are responsible for the overall profitability of your business unit. Your company ships your products to Malaysia. The retail stores that buy your products there pay you in their local currency, the Malaysian ringgit (MYR). All sales for the first quarter are paid on April 1st and use the exchange rate at the close of business on April 1st or the first business day after April 1st if it falls on a Saturday or Sunday. The company has sales contracts with different vendors that determine the number of units sold well in advance. The company is contractually obligated to sell 4,000 units for exactly 1.25 million MYR for the first quarter. The break-even point for each unit is $90 in U.S. dollars. Use the following foreign exchange rates:

  • On January 1, the daily spot rate is 3.13 MYR, and the forward rate is 0.317 U.S. dollars/MYR for April 1st of the same year.
  • On April 1, the daily spot rate is 3.52 MYR.

Prompt

Using the information above, create a short business memo that explains the profitability, viability, and importance of considering foreign exchange on the basis of the scenarios below.

Scenario 1: The company uses the spot rate on April 1st to convert its sales revenue in MYR to U.S. dollars.

Scenario 2: On January 1st, the company uses that day’s forward rate today to lock in a foreign exchange rate for its expected 1.25 million MYR in sales. This means the company agreed to exchange 1.25 million MYR using the forward rate on January 1st when April 1 arrives.

Scenario 3: Another option for the company is to spend the foreign currency and avoid any currency exchange. Because it is a manufacturing company, raw materials are always needed.

Specifically, you must address the following rubric criteria:

  • Foreign Exchange Calculations: Determine the profitability of the international business by using foreign exchange calculations for the first and second scenarios.
  • Spend or Save: Discuss what you would need to consider when determining if the company should buy raw materials with the foreign currency in an effort to avoid foreign exchange risk and whether this is a viable option for the company.
  • Conclusion: After determining the result for each scenario, explain the importance to a company’s financial results of considering foreign exchange risk.

What to Submit

Submit this assignment as a 250- to 300-word Microsoft Word document. Sources should be cited according to APA style, including URL.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

MALPRACTICE APOLOGY ANNOTATED BIBLIOGRAPHY INSTRUCTIONS OVERVIEW The Malpractice Apology Annotated Bibliography and the Malpractice Apology Research Paper are related assignments that require you to r

MALPRACTICE APOLOGY ANNOTATED BIBLIOGRAPHY INSTRUCTIONSOVERVIEWThe Malpractice Apology Annotated Bibliography and the Malpractice Apology ResearchPaper are related assignments that require you to research the existing literature and thendevelop the information from your sources into a critical analysis and practical application. Bothyour research of the literature and the research paper will focus

Repairing Customer Satisfaction Board of Directors Presentation Overview For your final assignment, you will continue to use the “Repairing Customer Satisfaction” Download “Repairing Customer Satisfac

Repairing Customer Satisfaction Board of Directors Presentation Overview For your final assignment, you will continue to use the “Repairing Customer Satisfaction” Download “Repairing Customer Satisfaction”case study to complete the assignment, you will need to read the case study and the article, The Art of Setting the Stage for Persuasion to develop the Board of

Files and Resources: All related files for the Final Project are available in the Modules → Final Project Folder on Canvas. You will find a ZIP folder that includes: Two datasets: House Price Data Ba

Files and Resources: All related files for the Final Project are available in the Modules → Final Project Folder on Canvas.You will find a ZIP folder that includes: Two datasets: House Price Data Basketball Season Wins Data A Final Project Summary Report Template After unzipping the folder, review the files and choose one dataset to complete your

To: Consulting Team From: CEO Re: Research Project and Presentation For this project, you will be focusing on Organizational Change, which is discussed in Chapter 16. Organizational change can come ab

To: Consulting TeamFrom: CEORe: Research Project and Presentation For this project, you will be focusing on Organizational Change, which is discussed in Chapter 16. Organizational change can come about for a number of reasons, which include problems within the organization that decreases its reputation or product confidence, innovation, technological improvements,

Assignment Overview In this week’s Strategic Management Research Project presentation, you will demonstrate your understanding of strategic management, apply critical thinking and problem-solving skil

Assignment Overview In this week’s Strategic Management Research Project presentation, you will demonstrate your understanding of strategic management, apply critical thinking and problem-solving skills, and exercise your skills in quality control when you evaluate the effectiveness of operational changes at Alphabet, Inc. Recall that you are the assistant strategic development

For the second assignment, you will continue to use the “Repairing Customer Satisfaction’ Download “Repairing Customer Satisfaction’case study to develop the second of two progress reports. You will a

For the second assignment, you will continue to use the “Repairing Customer Satisfaction’ Download “Repairing Customer Satisfaction’case study to develop the second of two progress reports. You will access the case study via the link provided and follow the instructions below. Review “Types of Data Analysis” Download “Types of Data Analysis”, for additional information

Pageof 3ZoomBUSI 830 Page 1 of 3 BIBLICAL, ETHICAL RESEARCH ASSIGNMENT INSTRUCTIONS OVERVIEW In this assignment, you will research Biblical, ethical research. Establishing a firm ethical foundation ba

Pageof 3ZoomBUSI 830Page 1 of 3BIBLICAL, ETHICAL RESEARCH ASSIGNMENT INSTRUCTIONSOVERVIEWIn this assignment, you will research Biblical, ethical research. Establishing a firm ethicalfoundation based on Biblical principles can reduce the researcher’s bias as well asmisrepresenting the literature and study findings. As Christians, we want to ensure we are beingobedient to God

This is a a journAl entry. No Ai or plagiarism included, pleas! Write a 525- to 700-word response to the following prompts in your journal entry: Identify Alphabet’s short-term and long-term goals.Ev

This is a a journAl entry. No Ai or plagiarism included, pleas! Write a 525- to 700-word response to the following prompts in your journal entry:  Identify Alphabet’s short-term and long-term goals. Evaluate how mergers and acquisitions in the last 3 to 5 years have contributed to Alphabet’s performance and affected

Discussion Thread: Case Study Research: Digital Considerations Types of Iterative Bounding Regarding ‘iterative bounding’, discuss the 3 types (spatial, temporal, and relational). Application of Boun

Discussion Thread: Case Study Research: Digital Considerations Types of Iterative Bounding Regarding ‘iterative bounding’, discuss the 3 types (spatial, temporal, and relational).  Application of Bounding to an Element of a Digital Case Study Design THEN show how you would apply at least 1 of these 3 types of bounding to 1 of 8

BUSI 830 Page 1 of 2 DATA GATHERING TOOLS AND ANALYSIS TECHNIQUES ASSIGNMENT INSTRUCTIONS OVERVIEW While data is information, evidence is data in support of some proposition. Collecting and analyzing

BUSI 830Page 1 of 2DATA GATHERING TOOLS AND ANALYSIS TECHNIQUES ASSIGNMENTINSTRUCTIONSOVERVIEWWhile data is information, evidence is data in support of some proposition. Collecting andanalyzing data is a major element of the work of a case study that requires severalconsiderations, such as delimitations, limitations, and assumptions; triangulation; population andsampling, etc. This

1) PERSONAL EXPERIENCE This section is intended to give you, as the applicant, the opportunity to discuss how your lived experiences, including those outside of your academic experiences, resulted in

1) PERSONAL EXPERIENCE This section is intended to give you, as the applicant, the opportunity to discuss how your lived experiences, including those outside of your academic experiences, resulted in a positive outcome that helped prepare you for this stage in your life. This section is not intended to compel

Country Project Report : FIJI Students will conduct research on an assigned country and complete a report about the country including the following information: Political environment Political system

Country Project Report : FIJI Students will conduct research on an assigned country and complete a report about the country including the following information: Political environment Political system (provide a score as well as information about the scale, state where the country lies on the continuum discussed in class, and

You will continue to use the “Repairing Customer Satisfaction” Download “Repairing Customer Satisfaction”case study to develop a hypothesis for your framed problem. This will be your first draft; you

You will continue to use the “Repairing Customer Satisfaction” Download “Repairing Customer Satisfaction”case study to develop a hypothesis for your framed problem. This will be your first draft; you will develop the final draft integrating your instructor’s feedback in the Week 6 Assignment. Instructions Based on the case study “Repairing Customer Satisfaction” Download “Repairing

Using the company Amazon.com, conduct a comprehensive analysis through the lens of strategic management. The paper should be 8–10 pages in length (not including title page and references) and incorpor

Using the company Amazon.com, conduct a comprehensive analysis through the lens of strategic management. The paper should be 8–10 pages in length (not including title page and references) and incorporate at least 10 high-quality academic or professional sources (e.g., peer-reviewed journals, credible business publications, textbooks). Using concepts and frameworks from