As the newly hired Vice President of Treasury for the sparkling beverages division at PACE, a global beverage giant, you have a lot of responsibility. Your job is to ensure that PACE is not negatively impacted by foreign exchange losses, and if possible, earn foreign exchange profits. The sparkling division had global sales of $15,000,000,000 USD in 2020. It is expected that global sales in foreign currency will be the same throughout 2021. Distribution is outlined in the table below.

country sales in foreign currency foreign currency spot exchange rate % of global sales sales (in USD) Brazil $1,768,950,000 BRL 2.3586 5% $750,000,000 Britain 634,410,000 GBP 0.6042 7% 1,050,000,000 Canada 1,983,420,000 CAD 1.1019 12% 1,800,000,000 Chile 495,796,500,000 CLP 550.8850 6% 900,000,000 France 1,422,915,000 EUR 0.7287 13% 1,950,000,000 India 81,629,640,000 INR 60.4664 9% 1,350,000,000 Mexico 7,864,920,000 MXN 13.1082 4% 600,000,000 Nigeria 96,593,400,000 NGN 160.9890 4% 600,000,000 Saudi Arabia 562,500,000 SAR 3.7500 1% 150,000,000 Sri Lanka 58,501,350,000 LKR 130.0030 3% 450,000,000 United States 5,400,000,000 USD 1.0000 36% 5,400,000,000 Total 100% $15,000,000,000

Part 1: Given the volatility of foreign exchange rates and your recent hire, the CEO of PACE, Peter Alexander, has asked that you inform him of your rationale and actions to achieve your objective of mitigating risk associated with global sales. Your first memorandum to Mr. Alexander should be 350-500 words, submitted as a PDF, no later than February 17, 2021 at 8:30 am EST. Be sure to explain the critical influences on foreign exchange rates of a specific country that you feel is worth protecting against foreign exchange losses and the options available to mitigate foreign exchange risk including your choice and plan of action.