Unit 5 - Submission Assignment 2

Assignment Details - Globalization is a continuous process whereby managers become aware of the impact of international activities on their companies. This process takes place in stages that include exporting, licensing joint ventures, wholly owned subsidiaries, and global sourcing. Each stage has implications for the type of accounting information reported.

Using the information developed in the Unit 5 - Submission Assignment 1 below, in 2-3 pages, explain ways in which Striking Furs can protect itself against the losses that would arise from a sudden increase in the foreign exchange rate.

Unit 5 - Submission Assignment 1

DATE	Account title and explanations	Debit	Credit
11-Dec-17	Inventory	$21,250.00
	Accounts payable		$21,250.00
	$25,000.00 x 0.85
31-Dec-17	Loss on Fluctuations in Foreign Exchange Rates	$1,000.00
	Accounts Payable		$1,000.00
	Original Account Balance	$21,250.00
	Adjusted Balance ($25,000.00 x 0.89)	$22,250.00
	Required Adjustment (Loss)	$1,000.00
9-Feb-18	Accounts Payable (WMB Motors)	$22,250.00
	Cash		$21,750.00
	Gain on Fluctuations in Foreign Exchange Rates		$500.00
	Account Payable, Adjusted Balance	$22,250.00
	Amount Paid	$21,750.00
	Gain from Decline in Exchange Rate	$500.00