Pls help me with points 1 ( which of these exchange rates listed will directly affect the company) & 2 in relation to the descripstion about the company thanks!
Information about Firm XYZ: 1. Firm XYZ is a car manufacturer located in the United State. 2. The firm imports parts to USA from foreign suppliers in Japan and Germany. 3. The firm exports cars to Australia, New Zealand and the United Kingdom. 4. The firm has a payment of 500,000,000 JPY due in 2 months to their Supplier 1 in Japan, a payment of 200,000,000 JPY due in 6 months to their Supplier 2 in Japan, a payment of 6,000,000 EUR due in 1 month to their Supplier 1 in Germany, and a payment of 10,000,000 EUR due in 3 months to their Supplier 2 in Germany. 5. The firm is due to receive 70,000,000 AUD from their customer in Australia in 3 months, 50,000,000NZD from their customer in New Zealand in 6 months, 80,000,000 GBP from their customer in the United Kingdom in 3 months. 6. At the moment, the firm imports tires from Japan. The firm hopes to manufacture their own tires. The management of the firm is in touch with a tire factory located in Canada about a potential takeover. At the same time, they are also evaluating the feasibility of establishing a tire factory in Poland. Based on the analyses performed in 2021, the net present values of these two projects are similar. The management has not decided between the two options. 7. The firm is concerned with the impacts of the high inflation rate globally on their business. 8. The firm is also concerned with the impacts of a series of potential interest rate rises ahead in USA on the firm. 1. List the exchange rates that directly affect your firm and form a general market view for these exchange rates. You need to analyse the factors affecting these exchange rates and then form your market view. 2. Discuss the types of exposure your firm may face. Please also compare and discuss the potential risks of the two tire factory investment options. Information about Firm XYZ: 1. Firm XYZ is a car manufacturer located in the United State. 2. The firm imports parts to USA from foreign suppliers in Japan and Germany. 3. The firm exports cars to Australia, New Zealand and the United Kingdom. 4. The firm has a payment of 500,000,000 JPY due in 2 months to their Supplier 1 in Japan, a payment of 200,000,000 JPY due in 6 months to their Supplier 2 in Japan, a payment of 6,000,000 EUR due in 1 month to their Supplier 1 in Germany, and a payment of 10,000,000 EUR due in 3 months to their Supplier 2 in Germany. 5. The firm is due to receive 70,000,000 AUD from their customer in Australia in 3 months, 50,000,000NZD from their customer in New Zealand in 6 months, 80,000,000 GBP from their customer in the United Kingdom in 3 months. 6. At the moment, the firm imports tires from Japan. The firm hopes to manufacture their own tires. The management of the firm is in touch with a tire factory located in Canada about a potential takeover. At the same time, they are also evaluating the feasibility of establishing a tire factory in Poland. Based on the analyses performed in 2021, the net present values of these two projects are similar. The management has not decided between the two options. 7. The firm is concerned with the impacts of the high inflation rate globally on their business. 8. The firm is also concerned with the impacts of a series of potential interest rate rises ahead in USA on the firm. 1. List the exchange rates that directly affect your firm and form a general market view for these exchange rates. You need to analyse the factors affecting these exchange rates and then form your market view. 2. Discuss the types of exposure your firm may face. Please also compare and discuss the potential risks of the two tire factory investment options
