International Finance and Conversion Rate Change Risks for University of Phoenix (UOP) MGT 448

Week Three Individual Assignment: International Finance Paper
Currency conversion rate changes are the most obvious risk of conducting business internationally; this can happen two ways: transaction and economic risks. Transaction risks arise when a firm agrees to pay or receive an amount of foreign currency. For example, if a US company agrees to purchase goods in 12 months for 100 million yen, and the dollar depreciates against the yen over that period, it will cost more in dollars to purchase the same amount of yen. …