Title

Reducing Exposure To Exchange-Rate Risk - A Case-Study

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Long Range Plan.

Keywords

Computer Science; Hardware & Architecture; Operations Research; Management Science

Abstract

During the last decade, with the advent of large fluctuations in the values of currencies, business managers came to realize that effective international financial management could be a major contributor to a firm's profitability. This same period showed aggressive marketing by U.S. firms in foreign markets. The resulting expansions have led to requirements for increased knowledge concerning foreign consumer behavior, pricing procedures and trade regulations. In addition, transactions with foreign customers have resulted in a more complex cash management environment. The firms may desire all payments received to be denominated in U.S. dollars, but such a policy could result in reduced exports if potential foreign importers wished to make payment in their own currency. Consequently, the U.S. firms should accomodate importers' desires and then implement a strategy to deal with the exchange rate risk. This paper develops such a strategy and illustrates how the strategy can be applied to a realistic case.

Journal Title

Long Range Planning

Volume

18

Issue/Number

101

Publication Date

1-1-1985

Document Type

Article

Language

English

First Page

98

Last Page

126

WOS Identifier

WOS:A1985AKD2400012

ISSN

0024-6301

Share

COinS