Discuss the following question which deals with financing that reduces exchange rate risk.

Kerr, Inc., a major U.S. exporter of products to Japan denominates its exports in dollars and has no other international business. It can borrow dollars at 9 percent to finance its operations or borrow yen at 3 percent. If it borrows yen, it will be exposed to exchange rate risk. How can Kerr borrow yen and possibly reduce its economic exposure to exchange rate risk

6.2 - Discussion (In-Depth Analysis) Topic 4: Exchange Rate Risk No unread replies. No replies. Discuss the following question which deals with financing that reduces exchange rate risk. Kerr, Inc., a major U.S. exporter of products to Japan denominates its exports in dollars and has no other international business. It can borrow dollars at 9 percent to finance its operations or borrow yen at 3 percent. If it borrows yen, it will be exposed to exchange rate risk. How can Kerr borrow yen and possibly reduce its economic exposure to exchange rate risk? Your post should demonstrate that you can conduct a scholarly dialogue, and apply one or more concepts from your readings with original analysis and interpretation. Review the Discussion Rubric for information on how your posting will be evaluated. Assignment Rubric Details close Rubric MBAA 653 6.2 Discussion Rubric Criteria Analysis/Interpretation view longer description Scholarly Dialogue view longer description Writing Skill view longer description Participation view longer description Total Points: 100 MBAA 653 6.2 Discussion Rubric Ratings Excellent (36- Satisfactory (32- Passing (28- Failing (040) 35) 31) 27) 40 pts 35 pts 31 pts 27 pts Excellent (18- Satisfactory (16- Passing (14- Failing (020) 17) 15) 13) 20 pts 17 pts 15 pts 13 pts Excellent (18- Satisfactory (16- Passing (14- Failing (020) 17) 15) 13) 20 pts 17 pts 15 pts 13 pts Excellent (18- Satisfactory (16- Failing (0- Passing (1420) 17) 13) 15) 20 pts 14 pts 13 pts 13 pts Pts 40 pts 20 pts 20 pts 20 pts