Question

How is money been used by Clearwater seafood? How is it important? Explain in Economic terms and provide references in APA format.

Answer 1

Clearwater Seafood

How is money used by clearwater seafood

Clearwater Seafood deals with customers from US, Japan, Europe and Asia.The company receives payment from international customers in their respective currency. When the Canadian dollar appreciates in relation to all these currencies,the money that Clearwater receives from its customers looses value. The higher the Canadian dollar appreciates,the less Canadian dollars Clearwater can convert to with the US dollars, euros or yen that they receive from their customers. The risks involved with the money is partially mitigated by the fact Clearwater operates internationally,which reduces the impact of any country specific economic risks on its business. Clearwater also uses forward exchange contracts to manage its foreign currency exposures.

Why is it important?

Clearwater's sales are more than half.The forward contacts will also yield good returns. The clearwater seafood used it's money to change the lobster fishing practices,as it was convicted of storing lobster traps on the ocean floor more than the limit of 72 hours. And so as to removed such objections various steps have been taken which involved a great deal of money.

It is a very important step to be taken from the point of environmental aspect. As the storing of lobster can lead to unforeseen issues at the sea and as clearwater owns exclusive rights to lobster fishing so its them who need to take serious conservation steps to help the seafood department and help aid the environment as well.