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1. Given that your business has receivables in a foreign currency (Turkish Lira), you may want to consider financing in that same foreign currency to
1. Given that your business has receivables in a foreign currency (Turkish Lira), you may want to consider financing in that same foreign currency to offset the exposure. Compare the recent interest rate of Turkish Lira to the U.S. interest rate: Is turkey interest rate typically higher or lower than the U.S. interest rate? Would you use financing in that currency to offset receivables? Explain. Explain how you could use foreign financing for your business in a manner that would reduce your exposure to exchange rate risk. Be specific.
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