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kenny6666 [7]
3 years ago
15

The EZ Lawn Corporation manufactures lawn equipment such as lawn mowers, blowers, and trimmers. The lawn equipment is assembled

in the U.S. at a facility in Florida, but the firm outsources inputs from a number of countries, each with varying degrees of economic stability. Given the importance of the firm's sourcing activities, EZ Lawn managers are discussing methods which might reduce the currency risk faced by EZ Lawn. Which of the following would most likely minimize the currency risk of EZ Lawn?
a. Concentrate all of the EZ Lawn outsourcing to one or two neighboring nations.
b. Re-locate a team of EZ Lawn managers overseas to stay abreast of currency changes.
c. List EZ Lawn stock on foreign stock exchanges to offset any currency losses.
d. Assign an EZ Lawn manager the task of monitoring currency fluctuations.
Business
1 answer:
zalisa [80]3 years ago
5 0

Answer:

c. List EZ Lawn stock on foreign stock exchanges to offset any currency losses.

Many foreign companies do this and list their stocks as ADRs in the US, so this is a method that actually works. The problem is that will listing American stocks in foreign markets help? Probably you could list some stocks in European, Japanese or even Canadian markets. But most foreign exchange markets pose a higher risk than a currency exchange risk.

Explanation:

Currency risk refers to the possibility that a company that engages in international trade losses money due to variations in the exchange rate between their domestic currency and a foreign currency. The best way to protect a company are currency hedged funds that trade currency exchange futures, but this option isn't included in the list.

a. Concentrate all of the EZ Lawn outsourcing to one or two neighboring nations. ⇒ This will increase the risk since it is similar to investing all your money in one single stock, it can be great or it can be a disaster.

b. Re-locate a team of EZ Lawn managers overseas to stay abreast of currency changes. ⇒ You can do this from anywhere in the world, you do not need to relocate someone.

d. Assign an EZ Lawn manager the task of monitoring currency fluctuations. ⇒ Similar to option B, it just takes a few seconds to do it and anyone can do it. It is something so basic that every company should do it. It is like telling someone that they shouldn't forget to keep breathing. It can help you deal with currency fluctuations, but it doesn't protect you from them.

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Personal finance skills have the most significant impact on an individual's
ryzh [129]

Answer:

Quality of life.

Explanation:

Financial skills can be defined as those skills that are used to tackle an unpredictable financial situation. It requires knowledge and understanding to manage such situations. Using these skills one is able to turn this tough situation in favor of ownself.

Such skills are used in the professional line by accountants, financial analysts, etc.

<u>Having personal financial skills helps in enhancing the quality of life. Having financial skills in personal life helps in many things such as savings, bargaining, able to distinguish between what they need and what they want, etc</u>.

So, the correct answer is quality of life.

7 0
3 years ago
]by generating and delivering timely and relevant information supported by networks, _____ creates new opportunities for conduct
Alina [70]

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8 0
3 years ago
A customer in the 28% tax bracket has $6,000 of capital gains and $9,000 of capital losses. How much unused loss is carried forw
rusak2 [61]

Answer:

Nill

Explanation:

Given that;

Capital gain tax = $6,000

Capital losses = $9,000

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Recall that maximum net loss deductible from taxes in a year is $3,000

Therefore,

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7 0
2 years ago
a benefit in receiving a higher education that comes from outside of yourself such as greater job opportunities would be called
Paul [167]

Answer:

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Explanation:

Remember, anything that brings you a certain level of push towards an expected end is a motivation. For example, having greater job opportunities sets one apart from others, which may lead to a better standard of living which creates a motivational benefit

Thus, we notice may notice many parents encouraging/motivating higher education for their children because of the perceived benefits they believe in so much.

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