how are gains to bidding firms related to exchange rates?

Expert Solution

Gains to the bidding firm will be related to the exchange rates because when the bidding form will be trying to bid for the acquisition and Merger then it would be keeping into factor the exchange rate which is prevalent between both the domestic country and the foreign country and he would be trying to incorporate that exchange rate difference in the building price and he will be trying to bid according to the exchange rate difference and the gaines which are accrued to him would be convertible in his domestic currency so it would be better in order to proactively determine those exchange rate fluctuation in the bidding price so he can ascertain the the better transaction exposure.

Bidder will always be trying to proactively ascertain the exchange rate fluctuation and he would be trying to discount it into his bidding offer so that he will be having a preplanned management of transaction risk.

jeff jeffy answered 2 years ago

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