Assignment:
Q: Determine how differences in exchange rates affect payment for goods and analysis to determine what can be done to minimize this affect.
1) You will select 5 countries and enter in the exchange rate (date 1) then the rate 30 days later --see sample above
2)The purchases order is submitted to your company when the goods were delivered but will be paid 30 days from that date in the currency you have selected
3) Based on 10,000 invoiced units determine how much extra or less money would be required to pay the invoice in the foreign currency.
The calculation will be based on the first rate (the time the goods were delivered) until the second rate (payment in 30 days). This increase/decrease would be due to exchange rate differences.
4) Analyze what could be done to minimize the increase or decrease in cost due to exchange rate differences
| SAMPLE Inc. |
| Foreign Currency Analysis |
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| Country |
Monetary Unit |
Date 1 |
Dollar per Unit of Foreign Currency |
Date 2 |
Dollar per Unit of Foreign Currency |
Invoiced Units |
Increase/ (Decrease) |
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| Britain |
Pound |
9/17/2014 |
0.6162 |
10/17/2014 |
0.6245 |
10,000 |
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10,000 |
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10,000 |
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10,000 |
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10,000 |
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10,000 |
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Total |
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