Risks of adverse exchange rate fluctuations
What are the risks of adverse exchange rate fluctuations?
Expert
The risks of adverse exchange rate fluctuations are as mentioned below:
1. The instability of exchange rates very much complicates the subject of geographic cost benefits. Currency exchange rates often change as much as 20 to 40 % annually. Changes of this magnitude can either totally clean out a country’s low- cost benefit or transform a former high-cost place into a competitive-cost place.
2. Declines in the worth of the United States dollar against outside currencies decrease or eliminate whatever cost benefit outside manufacturers might have over the U.S. manufacturers and can even prompt outside companies to set up manufacture plants in the United States.
3. Currency exchange rates are rather random, swinging first one method then another method, so the competitiveness of any company’s facilities in any country is partially dependent on whether exchange rate varies over time have a unfavorable or favorable cost impact.
4. Companies making products in one country for export to outside countries always increase in competitiveness as the currency of that county grows weaker. Exporters are drawback when the currency of the country where products are being manufactured grows powerful.
What are the Competitive benefits in related diversification?
Illustrates the low-cost provider strategies?
Write a short note on the dissimilarity between Human Resource management and Personnel management?
What do you mean by the term pure monopoly in brief?
Illustrates the Key Concept of linking strategy of a company to ethical standards and core values?
Why is functional organizational structure obstructing strategy execution?
List down some of the effectual listening policy which would be cooperative in the telemarketing firm?
what are the advantages and disadvantages for the rate of return method and competitive methods for pricing techniques?
Explain about the strategy-culture fit in global and multi-national companies.
State the function area strategies.
18,76,764
1941144 Asked
3,689
Active Tutors
1435759
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!