question archive You have just been appointed treasurer of a medium-sized Slovenian instrument-making company
You have just been appointed treasurer of a medium-sized Slovenian instrument-making company
Subject:FinancePrice: Bought3
You have just been appointed treasurer of a medium-sized Slovenian instrument-making
company. Its manufacturing facilities are in Slovenia (which is part of the Eurozone) and all
its raw materials and parts come from within the Eurozone. Exports to countries outside the
Eurozone account for 60 percent of the company’s sales, and most of its export sales are to
the US. As the market for the company’s products is international, it faces the same
competitors in each market. Its major competitor is a US company, and another substantial
competitor is based in Japan.
• What are the channels through which the company’s foreign exchange exposure
arises? Explain.
