BUS202 Chapter Notes - Chapter 7: Tektronix, Transfer Pricing, Accounts Receivable
Document Summary
Week 7 functional area in international business operations. Chapter 10 closing case study: international financial management at tektronix (p. 307- Competitors such as hp and kodak are more geographically diversified in their sourcing. Intelligence from online sources, the forecasting programs to monitor changes. Tek if the dollar changes rather than a fixed amount its fluctuating. Greater foreign exchange exposure on behalf of tek an advantage for hp and kodak. Joint ventures in japan and china and manufacturing plants across the world. Managing currency risk manage the multiple-currency transactions of the firm and the exposure to exchange rate fluctuations. Management of currency risk through hedging: hedging refers to efforts to compensate for a possible loss from a bet or investment by making offsetting bets on investments. In international business, it refers to using financial instruments and other measures to reduce or eliminate exposure to currency risk.