This preview shows page 1. Sign up to view the full content.
Unformatted text preview: for extending the credit in the foreign currency to foreign consumer who obtains credit from foreign supplier. Income effect from every of such decisions must be reported for separately. The hedging is a process for eliminating the exposure to the foreign exchange risks so as for avoiding the potential loss from fluctuation in the exchange rate. Additionally for avoiding the possible loss, companies hedging foreign currency transaction & commitment for introducing elements of the certainty in to future cash flow resulting from the foreign currency activity. The hedging includes establishing price today at that the foreign currency may be purchased or sold at future date....
View Full Document
This note was uploaded on 02/21/2012 for the course ACT 492 taught by Professor Ngo during the Fall '11 term at Colorado.
- Fall '11