Information about Firm XYZ:

1.Thefirm imports medical equipmentto Australia from foreign supplierslocated in Singapore, the United States and the Germany.

2.The firm also exports pharmaceuticals from Australia to Singapore.

3.The firm has a payment of 5,000,000 SGD due in 3 months to their supplier in Singapore,a payment of 4,000,000 USD due in 3 months to their supplier in US, and a payment of 500,000 EUR due in 1-monthtime to their supplier in Germany.

4.The firm is due to receive 2,000,000 SGD from their customer in Singapore in 4 months.

5.The firm also have 2,000,000 USD deposited in a bank in New York and the deposit is due to mature in 2months.The money was deposited 10months ago at an interest rate of 1.5% p.a

Discuss the firms risk management implicationsand design hedging strategiesfor the firm. You also need to evaluate the hedging outcome what will the outcome be if exposure is hedged and what will the outcome be if exposure is not hedged..