Question: Hello, Please help me to finish my Final Asignment: Name and Introduction of your business Develop an International Strategy for Your Own Small Business: Evaluating
Hello,
Please help me to finish my Final Asignment:
Name and Introduction of your business
Develop an International Strategy for Your Own Small Business:
Evaluating Foreign Exchange Risk and Weighted Average Cost of Capital Consider how exchange rate movements might affect the profits of export sales to a target country and determine the cost of capital if you set a subsidiary abroad. Focus on one target country and its currency relative to the U.S. dollar.
Here are some questions to evaluate for your small business:
What does a graph of the target country currency or dollar look like?
If the dollar rises in value against the foreign currency, how are sales revenues and profits affected?
What occurs with a decrease in the value of the dollar?
How could your firm hedge exchange rate risk?
Calculate the weighted average cost of capital of your subsidiary abroad.
Thank you,
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