You manage the international business for a manufacturing company. You are responsible for the overall profitability of your business unit. Your company ships your products to Malaysia. The retail stores that buy your products there pay you in their local currency, the Malaysian ringgit (MYR). All sales for the first quarter are paid on April 1st and use the exchange rate at the close of business on April 1st or the first business day after April 1st if it falls on a Saturday or Sunday. The company has sales contracts with different vendors that determine the number of units sold well in advance. The company is contractually obligated to sell 4,000 units for exactly 1.25 million MYR for the first quarter. The break-even point for each unit is $90 in U.S. dollars. Use the following foreign exchange rates:
On January 1, the daily spot rate is 3.13 MYR, and the forward rate is 0.317 U.S. dollars/MYR for April 1st of the same year.
On April 1, the daily spot rate is 3.52 MYR.
Using the information above, create a short business memo that explains the profitability, viability, and importance of considering foreign exchange on the basis of the scenarios below.
Scenario 1: The company uses the spot rate on April 1st to convert its sales revenue in MYR to U.S. dollars.
Scenario 2: On January 1st, the company uses that day’s forward rate today to lock in a foreign exchange rate for its expected 1.25 million MYR in sales. This means the company agreed to exchange 1.25 million MYR using the forward rate on January 1st when April 1 arrives.
Scenario 3: Another option for the company is to spend the foreign currency and avoid any currency exchange. Because it is a manufacturing company, raw materials are always needed.
Specifically, you must address the following rubric criteria:
Foreign Exchange Calculations: Determine the profitability of the international business by using foreign exchange calculations for the first and second scenarios.
Spend or Save: Discuss what you would need to consider when determining if the company should buy raw materials with the foreign currency in an effort to avoid foreign exchange risk and whether this is a viable option for the company.
Conclusion: After determining the result for each scenario, explain the importance to a company’s financial results of considering foreign exchange risk.
Maya Angelou's Poems There is a route when there is a will, and Angelou continually standing up and attempting to remain alive. Mayo Angelou clarifies the truth among battling and defeating their excellence in her sonnet "Ladies Work". This sonnet is about a mother, ideally a single parent with a kid to deal with her. Sonnets start with a message: "I feed the youngsters/spruce up/floor mop/purchase food/then dry the fry chicken/infant/I feed the organization/I have weeds in the nursery/I have a shirt to battle Can wear/slice/I need to clean this lodge/Then hope to pick patients and cotton (1-14). The topic for this semester depends on Maya Angelou's sonnet "Confined Bird". From the start, I believe that you imagine this may resound with our understudies. There is no uncertainty that the sonnets, stories and visual works of art created by our understudies create around their physical pens, the dull dividers of the jail. Be that as it may, a significant number of them extend your usual range of familiarity to discuss different confines a long ways past this enclosure and feel they are caught: society, their families, and equity framework I chose to begin my examination with Maya Angelou 's Still I Rise by Maya Angelou. Craftsmanship style verse frequently utilizes dialects, which prompts understanding of numerous implications. In the wake of tuning in to the acclaimed and regarded verse's exhibition of Angelow, I figure it will be a perfect possibility to catch as a score. Maybe by breaking down Angelu's offbeat cadence and elements it is conceivable to dispose of different implications and bits of knowledge into the way Angelou is attempting to make it conceivable to encounter this sonnet. R. S. It would be ideal if you cautiously inspect Lore by working ladies at Thomas and Maya Angelou. How do writers express their mentalities toward life and work with their own sentences? R. Thomas' sonnet "Legend" and Maya Angelou "Ladies Works" are stanzas about the work and life of two totally various individuals. The sonnet "Legend" is about the laborers of Wales who prefers their work and likes customary cultivating strategies. He tries sincerely and supports an incredible entirety, he works for himself. This sonnet was additionally composed by ranchers Maya Angelow of Wales: Source of individuals "I am a human," Angelow stated, "Nobody can ponder to me" (Shafer). Maya Angelow is likely the most "human" individual on the planet. Surely, her human race develops in all the battles she encountered in her initial days. Her life is described by the unsteadiness of her family and family, and the test of being a person of color in the nineteenth century. Her profound humankind is obvious to everybody.>GET ANSWER