Question
5. Higeen recently decided to invest more than JD300 million for expansion in Indonesia . Indonesia offers considerable potential because it has 200 million people
5. Higeen recently decided to invest more than JD300 million for expansion in Indonesia . Indonesia offers considerable potential because it has 200 million people and their demand for Higeen is increasing . However , Higeen's initial outlay was used to purchase three production plants and a distribution network of almost 1,000 trucks to distribute its products to retail stores in Indonesia . The expansion in Indonesia was expected to make Higeen's products more accessible to Indonesian consumers . a . Given that Higeen's investment in Indonesia was entirely in dollars , describe its exposure to exchange rate risk resulting from the project . Explain how the size of the parent's initial investment and the exchange rate risk would have been affected if Higeen had financed much of the investment with loans from banks in Indonesia .
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