Exchange Rate Risks (Coursework Sample)

Exchange Rate Risks
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Factors that contribute to exchange rate risks in Kudler Fine Food
The Kudler Fine Food is an organization that has developed after going public through the sale of IPO; this factor has increased the finance operations of the organization. This has occurred through individuals participating in the buying of shares, so that they can be the stakeholders of the company. The amount usually contributed by the stakeholders has been utilized in the expansion of various operations leading to an increase of many branches of the company.
The strategy has been termed as an excuse by the shareholders to leave the company, this will create negative attitude to the consumers and the Kudler Fine Foods name will be tainted. The exposure to diverse stakeholders results to the decline on the confidentiality levels. There has been a threat of competition resulting from the disclosure since information is passed to the competitors about the functioning of the organization and this enables them to develop strategies that outdo the Kudler Fine Foods. This factor contributes to the exchange rate risk.
The interest rate of the country may also have an effect on the progress of the organizations since it results to the decline of the financial levels. The level of unemployment is outlined as a factor that alters the organization development considering that majority of individuals in the country have no money and this affects the economy of the country greatly. The central bank has a great initiative on the contribution of exchange rate risk of Kudler Fine Food Company, this is because they focus on the economic and monetary value, and a decline of the value results to the decline of the competitive ability of the company....