Foreign Transactions
1. Many countries today have exchange rates that float somewhat freely against other countries. How can a business manager be responsible for foreign transactions forecast exchange rates to better manage foreign exchange exposure?
Be sure to cite your source and provide numeric examples.
2. Why do some regions promote unrestricted trade within their region but restrict trade that crosses the region's boundaries? Why would they not extend the advantages of intraregion trade by extending the same privileges to countries outside their region? If you are an importer and must pay the exporter in their currency, how can you manage the risk that this currency may increase in value before the date when you make the payment in their currency?