International Finance and Conversion Rate Change Risks for University of Phoenix (UOP) MGT 448

Week Three Individual Assignment: International Finance Paper Currency conversion rate changes are the most obvious risk of conducting business internationally; this can happen two ways: transaction and economic risks. Transaction risks arise when a firm agrees to pay or receive an amount of foreign currency. For example, if a US company agrees to purchase goods in 12 months for 100 million yen, and the dollar depreciates against the yen over that period, it will cost more in …showed first 75 words of 808 total…

…showed last 75 words of 808 total…S.C., Marcus, A.J. Fundamentals of Corporate Finance (4th ed.) McGraw-Hill/Irwin, 2004. New York, NY. James Mehring in New York. (2004, March). The Dividend From Buying Greenbacks;. Business Week,(3875), 34. Retrieved October 3, 2004, from ABI/INFORM Global database. (Document ID: 625790751). Jeremy J. Siegel. (2004, April). How to Play the Dollar;. Kiplinger's Personal Finance, 58(4), 64. Retrieved October 3, 2004, from ABI/INFORM Global database. (Document ID: 580708551). Michael Freedman. (2004, June). Judgment Day;. Forbes, 173(12), 097-98. Retrieved October 3, 2004, from ABI/INFORM Global database. (Document ID: 640823761).