Issues in Global Business Assignment (Doc)
Added on -2020-07-23
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Issues in Global Business
Table of ContentsIssues Impacting the proposal...............................................................................................................3Entry strategy........................................................................................................................................5REFERENCES..........................................................................................................................................6
Issues Impacting the proposal(A)Volatile Foreign ExchangeInternational business one of the competitive task for a multinational company due to thehigh degree of volatility in the exchange rate. It is one of the major risk, which facing by thebusiness organization due to its uncertainty. There are large number of companies whichconducting their business in to other countries and transaction are based on global currencies.If a changing rate not favourable for a corporation, it can wipe out profit and vice versa. Inthe context of Jaya Development Sdn Bhd which wants to operate their business at the globallevel would be impacted their business in positive or negative manner. There are variouscurrencies are exchange each and every day which prices are fluctuate on the basis of itsdemand and supply and also various other economic factors. For instance, cited firm conducttheir business in to India and they increase their sales in a particular year. At the same timenow they want to exchange Rupees-US dollars. But due to weakening of particular currencythey would face loses which is not good for a growing company (Sethi and Schepers, 2014).This shows that, exchange rate one of the major concern for a company which required todevelop a risk management approach in order to prevent such risk. The fluctuation on theexchange rate is having negative and positive impact on the importing row materials andexporting goods. There are various countries where products are cheaper due to its currencyexchange and vice versa. For example, Jaya importing row materials from other nation toproduced finished products. If exchange rate lower of importer country which required to paymore for such product and increase its products price and reducing its cost.
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