Discuss the implications of this change in exchange rate

Assignment Help Operation Management

Reference no: EM131228673

The CFO of a company with global operations has a forecast that indicates that the euro will depreciate in value against the dollar by 30% over the next year. The company has significant operations in the Euro Zone, including a wholly owned subsidiary that manufactures components for products that are assembled in the US. The subsidiary is financed with bank borrowings in the US. Discuss the implications of this change in exchange rate and what actions can be taken and why.

Reference no: EM131228673

Questions Cloud

What about opportunity marketplace : What is your mission? Are you looking for part-time or temporary experience to enhance your résumé, a career stepping-stone, or a full-time, longterm career choice? What are your strengths and weaknesses? Make an honest self-issues often come up duri..

Identify the important issues in manufacturing firms : Describe the issues facing international IS managers in service and manufacturing firms. Identify the important issues in manufacturing firms with low and high international involvement. Explain the reasons for the importance of the issues facing int..

Provide high quality with each activity in the operations : Select a type of small business. Then, following the Operations Processes (Input - Processes - Output), describe ways the business owner can provide high quality with each activity in the operations of that business.

Charge of the project management office : Erica Bell was in charge of the Project Management Office (PMO) for her consulting firm. The firm, JWD for Job Well Done Consulting, had grown to include more than 200 full-time consultants and even more part-time consultants. What do you learn from ..

Discuss the implications of this change in exchange rate : The CFO of a company with global operations has a forecast that indicates that the euro will depreciate in value against the dollar by 30% over the next year. Discuss the implications of this change in exchange rate and what actions can be taken and ..

Political economy effects : Political economy effects. Consider an economy in which two factors of production, labor and capital, produce two goods, capital-intensive pharmaceuticals and labor-intensive clothing. If this economy is capital-abundant relative to the rest of the w..

Purchasing and supply chain management : Purchasing and supply chain management / Robert M. Monczka - Sixth edition Chapter 5 You have just recently been appointed Chief Purchasing Officer. You will oversee a company with worldwide operations located at 55 buying locations.

Critique the use of bank debit cards : Critique the use of bank debit cards. Bank debit cards are becoming a popular alternative to using checks or credit cards. How has technology, such as online banking, affected these aspects? Discuss any pros and cons about the effects of technology o..

Responsible for major litigation : If you were a manager responsible for major litigation, what factors would you take into account in deciding whether to insist on a confidentiality clause in a [litigation settlement] agreement? What factors might lead you to not insist on confidenti..

User Account

All Pages