PART-B

After successfully passing from hp University College you are offered a job in a Multi- National Company. Since, your answers (during the interview) related to Foreign Currency Transactions impressed the Head of Treasury department you are placed in the Treasury Department. After, the initial on-the job training you have been assigned to identify the countries from where the company should purchase spare-parts and supplies; and the countries the company should focus on sales.

Activity-1

Identify:

a)- any three countries that the company should buy

. b)- any three countries that the company should sell.

What are the reasons of selecting those countries?

NOTE: Your answer should be supported with arguments and references.

Activity-2

During the last 10 days the sales and purchase of the company were as follows:

DAY	PURCHASES			SALES
	Country A	Country B	Country C	Country X	Country Y	Country Z
1-	5,000	5,000	5,000	7,000	7,000	7,000
2-	12,000	12,000	12,000	14,000	14,000	14,000
3-	8,000	8,000	8,000	9,000	9,000	9,000
4-	10,000	10,000	10,000	12,000	12,000	12,000
5-	6,000	6,000	6,000	8,000	8,000	8,000
6-	7,000	7,000	7,000	8,000	8,000	8,000
7-	15,000	15,000	15,000	16,000	16,000	16,000
9-	12,000	12,000	12,000	14,000	14,000	14,000
10-	3,000	3,000	3,000	5,000	5,000	5,000

*Assume that purchases and sales were in Foreign Currency

Activity-3

Q1- What was the total cost paid in Saudi Riyals? Q2- What was the total Sales in Saudi Riyals?

Q3- Identify the main reasons of variation in cost and sales in each country. Your answer must be related only with respect to variation in foreign exchange currency rate.

Q4- List the mistakes you did in selecting the countries at the beginning. How could you have rectified them?

Activity-4

Q1- Will there be any change in your decision regarding the countries for the next month purchases and sales if the transactions are in Saudi Riyals.