8-1 Discussion: Currency Considerations

Suppose a U.S. wood-products company has facilities and employees in Canada providing its raw materials (wood), but has most of its sales in the United States.

(1) What are the most important operational and financial risks in this arrangement? (2) How can the company pay its Canadian employees, who presumably want Canadian dollars, when its U.S. customers are paying in U.S. dollars? Furthermore, how can it calculate its profit if revenue is in U.S. currency and most of its costs are in Canadian currency?

Order the answer to view it

Assignment Solutions
Assignment Solutions

ORDER THIS OR A SIMILAR PAPER AND GET 20% DICOUNT ON YOUR FIRST THREE PAPERS WITH US. USE CODE GET2O ORDER NOW