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Assume i am running a multinational corperation based in the US with the EURO as the forigen currency used in recievables. Given that your business
Assume i am running a multinational corperation based in the US with the EURO as the forigen currency used in recievables. Given that your business has receivables in a foreign currency, you may want to consider financing in that same foreign currency to offset the exposure. Compare recent interest rate of the foreign currency of concern to the US interest rate: Is the foreign interest rate typically higher or lower than the US interest rate? Would you use financing in that currency to offset receivables? Explain.
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