Question

1. What percentage of UnitedHealths Group revenue comes from domestic and international sales and discuss why revenue is strong in the specific region? Discuss if the corporation has a competitive advantage.
2. Discuss the impact the fluctuating dollar has on UnitedHealth Groups' profits for the last twelve months. Use a graph to illustrate the fluctuations against the foreign currency
3. Discuss how UnitedHealth Groups manage its exposure to foreign exchange rate risk?
4. Discuss the types of foreign exchange exposures

Answer 1

UnitedHealth group is American profit managed health care company.It have revenue of 80% from domestic and international sales.Increasing revenue is common sign of financial health in a company.New companies have high revenue in their early stage of development.By following basic operational,marketing and service tips established company can grow their revenue.In specefic region,the revenue is high.Because due to the high number of customers, increase the average transaction size and high frequency of transaction per customer.

Competitive advantage is goods and services produced by company better or cheaply than its rivals.People are the main source behind competitive advantage.Organizational culture and structure is a source of competitive advantage.Technology,capital,natural resources and products are other source of this advantage.

Foreign exchange is 3 types.Transaction exposure,economic exposure, translation exposure.Transaction exposure is defined as level of uncertainty in international trade.Economic exposure defined as unexpected currency fluctuations effect a company.Cash flow of company, foreign investment etc is effected by economic exposure.Translation exposure defined as the risk due to equities of company,assets and liabilities.It also due to the income will change in value as a result of exchange rate changes.