Explain how you could use foreign financing for your business in a manner that would reduce your exposure to exchange rate risk. Be specific.

Given that you receive periodic payments in foreign currency for your exports, explain how you could effectively use cash management. That is, explain how you would use the funds as they are received.

If you had some existing short-term debt, would you prefer to invest the cash in short-term securities or would you pay off the debt?

Answer rating: 100% (QA)

ANSWER 1 When a company obtains foreign financing there is a high probability that it will be expose... View the full answer