Managing Exchange Rate Exposure Report

Managing Exchange Rate
Exposure Report

Table of Contents
 Introduction
 Part 1
 Part 2
 Conclusion
 References

INTRODUCTION
Nike's business operations
 Nike is the American multinational corporation which has spread its operations in the various
countries around the globe, which is the major reason they are exposed to the foreign currency
fluctuations and associated risks.
 The business operations of the company are ranging from the designing to development and from the
marketing to sales of the footwear, apparels, equipment's, accessories and other related services.
 The company is highly dedicated to the corporate social responsibility and the corporate governance to
generate the positive brand value. The tag-line has inspired for the necessity of the fitness and health
among the potential buyers of the brand.

Part 1
Nature and major sources of exchange rate risk exposure
 The company is exposed to the foreign currency fluctuations as a result of the international sales,
product sourcing and the funding activities that they assume round the world.
 The risks associated with these exposures can either be anticipated or unanticipated against which
a well-developed risk management programme is developed so that the either the risk can be
lessened, delayed or completely be avoided.
 These currency volatility causes the disruptions in the financial and the operational position of the
business and also results pertaining to that period.