Wednesday, October 28, 2009

Risks involved in exchange rate in international marketing?

all the risks involved in international marketing and their management



Risks involved in exchange rate in international marketing?

also, often you can hedge against interest rate changes by locking in a rate at a furtures rate (1month, 3 month, etc.) if you think that the exchange rate will be more favorable that way...of course your overseas connection will not really care for that because it will have the reverse effect on their exchange rate...I am in a college class right now where we did a extensive study of exchange rates and they are verrrry complex and difficult to predict..hope this helps!



Risks involved in exchange rate in international marketing?

Risks in exchange rate? Markets fluctuate and so there is always a risk that the rate will go against you and you end up paying more. This is why most large corporations use U.S. dollars (or maybe euros). The best advice I would give is to use a U.S. $ or if you insist on using foreign currency, lock in the price.

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