International Finance Paper

International Finance Paper Dominic Fera University of Phoenix FIN/325: Financial Analysis for Managers II Mr. Jeffrey Leeson July 9, 2005 April 5, 2005 When a company begins a transaction in a foreign currency, it accepts any economic risk due to fluctuating exchange rates. The globalization of the world economy and the devaluation of the U.S. dollar have allowed more American companies to enter the export/import markets. Additionally, many managers who previously avoided these markets are finding that …

…management must recognize the effects of exchange gains and losses on income and profit margins. The success of any of these strategies depends on management's sensitivity to the foreign exchange markets and the needs of its subsidiaries. References Bartlett, Christopher A., Sumantra Ghoshal. (1998) Managing Across Borders - The Transnational Solution. Boston: Harvard College Mitroff, Ian I. (1987) Business Not as Usual - Rethinking Our Individual, Corporate, and Industrial Strategies for Global Competition. San Francisco: Josey-Bass Inc.