Question

Multinational corporations are faced with continuous exposure to exchange rate risk. Each company must decide how best to manage that risk. Find an article on how another multinational corporation chose to deal with its exchange rate risk.

Prompt: briefly summarize the strategy and/or tactics the company in your article used to manage its currency risks.

minimum 250 words

Answer 1

Every multinational corporation have the exchange rate risk as every country or a every different country e have their own currency and the value of their currency which means in the exchange of export and imports of the product and the goods or services can lead to the the change in the price level of the currency that is devaluation of the currency e and it is a big risk in the exchange time.

And the risk of MNC has been expended internationally that is related to the different countries and regions in which it plans to operate as well as have fluctuations in currency exchange rate.

• Overestimating a local markets economic potential:-In this all the information should be clear and available to all the company employees and employers for the more variability in the work and to avoid the uncertainty.
• Large and frequent economic swings:-weather is such a a condition in which a human have no effect on its changing, where the economic environment create risk and walked on a company's global initiative.and for the disasters and the uncertainty is it has to be protected and prepare for the sudden changes to cope up with those uncertainty is in the future.
• Basic infrastructure quality and service issues:-work method of the infrastructure depends on the services like financial services technology services energy services and transportation bunch of the services makes the the company of the organisation move towards the head or top of the body structure.