Title: Examine ways to manage risk related to exchange rate fluctuation.
Course: Opportunities in Global Trade, Advanced (12056-II) > Section: Analyzing Pricing and Payments in the International Marketing Plan

Examination should include

- risks associated with fluctuations in the exchange rate
- options for managing risk
- advantages and disadvantages of accepting payments in host country currency.

Process/Skill Questions:

- What is the purpose of the floating exchange rate?
- How can exchange rate fluctuation impact the individual consumer? How can it impact global businesses?
- What methods do companies use to offset the risk of fluctuating exchange rates?
- What is the IMF, and how does it help to regulate changing overall values of currency?
- How do governments regulate changing overall values of currency regarding imports and exports?
- What actions could a country take to make its currency more widely accepted around the world?
- Why would some experts prefer a fixed exchange rate?
- How does a business determine the methods of payment that it will accept?
- How does the political stability of the host country affect the method of payment desired?