Case Scenario: This is a privately held company, a Fortune 1000 enterprise with revenues in excess of 1 billion dollars, and an industry leader in the field of plastic injection molding. Its headquarters is in San Jose, there are 2 plants in the USA, and 1 in China. The company wants to expand its operation. The company is faced with three options for expansion:
- Going public through an IPO
- Acquiring another organization in the same industry
- Merging with another organization
Consider the following as it relates to all three options should the organization pursue an international location:
- Factors that contribute to exchange rate risks