Question

In: Economics

​​​​​​​HYATT HOTELS How does fluctuating exchange rates affect my business? Where can my business go to...

​​​​​​​HYATT HOTELS

  1. How does fluctuating exchange rates affect my business?
  2. Where can my business go to secure financing?
  3. How has my business performed in the stock market?
  4. What impact has the IASB had on my business?
  5. How has my business benefited the stakeholders?

Solutions

Expert Solution

Answer:

Fluctuating exchange rates affect my business in the way of impacting the currency rates in the global market that rises or lower the cost prices or sale prices for the international sales and purchases. The international sale and purchase has direct relation with exchange rates. If the currency exchange rate increases for our purchases, then we will have to pay higher cost to our suppliers. If the exchange rates lower downs, then we will get benefits in the cost payment to overseas suppliers.
My business can go to secure financing is having the exchange rate fixed or minimum fluctuations. This minimum changes or fluctuations will have minimum impact on the costing with oversea vendors and customers. We can have a agreement with suppliers and customer for the fixed exchange rate for the year so that we can avoid the interim fluctuations.
My business has performed good in the stock market as we have invested in the stock market based on our preferred investment criteria where we have investment in some basic funds, emerging funds and good growing funds.
The impact IASB had on my business such that it structured my accounting process to the international level. The accounting process to the international level helps in developing the right accounting process at the business level which will help in right reporting of the financial and accounting at the business. This will help to get better acceptances at the international level and gets good credit at the international market.
My business has benefited the stakeholders by providing right value to their investments with better rate of return as compared to the market. We have satisfied our investors and stakeholders from the performances of our business.

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