Exchange Rate Assignment Example | Topics and Well Written Essays - 250 words

Exchange Rate - Assignment Example Kerr Inc. may reduce its economic exposure to foreign exchange risk by using foreign exchange contracts. A foreign exchange contract will enable the company to make future transactions using the current exchange rate (Jacque & Jacque, 1996). Kerr Inc. can minimize its exposure to foreign exchange risk by expanding its investments to other foreign markets. For instance, the company may experience losses if the U.S dollar appreciates in value against the Japanese Yen. However, the company can recoup the losses if the U.S dollar depreciates or devalues against the currency of another country it exports to, which increases the money the company receives for the same volume of goods (Managing foreign exchange risk, 1986). Alternatively, Kerr Inc. can decide to accept payment for its exports in U.S dollars only. Using the U.S dollar as the only currency of transactions will enable the company to mitigate the exchange rate risk because the exchange rate between the U.S dollar and the Japanese Yen will no longer affect the transactions of Kerr Inc (Managing foreign exchange risk, 1986). Kerr Inc. may decide to charge more for its products in the Japanese market to carter for the foreign exchange risk. This strategy may require the company to study the Japanese Yen to determine the magnitude of the risk of exporting to the Japanese market. For instance, if the company discovers that the Yen fluctuates by about 8% annually, then it may decide to charge 8% more for its products (Jacque & Jacque, 1996). However, this strategy may fail to yield desires results if the exchange rate fluctuates more than anticipated. More so, market forces or government intervention may hinder the company’s move to raise prices for its products (Small Business - Chron.com, 2015). Small Business - Chron.com. (2015). How Do Companies Mitigate the Risk of Foreign Currency? Retrieved 2 May 2015, from

Personal Conflict Essay Example | Topics and Well Written Essays - 500 words

Personal Conflict - Essay Example The first three years of my adolescence went well without major events except the effort of accepting numerous physical changes. However, when I was turning 16 years, my friends exposed me to peer pressure that was too much to handle. Notably, I had a measure of naivety, which compelled me to consider pleasing friends as a critical thing. Moreover, I felt that there was a salient to belong, since I had grown up with them my whole life. This paper will describe a serious conflict that I faced when I was 16 years old and how I handled it. As a young child, my parents had always been proud of me and had made efforts of inculcating good values in me. I remember my mother was very specific with discipline and appropriate behavior. Moreover, I was a bright student and presented an exemplary performance in school. These were enough reasons to make my parents proud of me. However, becoming an adolescent changed my life. I faced a serious identity crisis that destroyed my self-esteem. I was torn in between my parents and my peers. At some point, I was well aware that I needed to obey and respect my parents, however, with the increasing pressure from my peers that proved to be difficult. My change of behavior and attitudes made my parents begin to be very strict with me. There are many times when I was given strict rules if I had to go out with my friends. Despite these strict rules, I ended up breaking them and losing the favor of my parents. They were distressed about the challenges I was facing as a teenager. They tried to help me, but to no avail. When I was not allowed to go out, I eventually lost the approval of my friends. Having lost the favor of my parents and the approval of my friends, I was faced with a personal conflict. I felt lonely and disappointed with life. The personal conflict plunged me into emotional distress. I lost interest in many of the things I had been doing before and my self-esteem was