Holt has asked you to answer the following questions : 1. What type ( s ) of exposure ( i.e. , transaction , eco nomic , or translation exposure ) is Blades subject to ? Why ? 2. Using a spreadsheet ,...

Holt has asked you to answer the following questions : 1. What type ( s ) of exposure ( i.e. , transaction , eco nomic , or translation exposure ) is Blades subject to ? Why ? 2. Using a spreadsheet , conduct a consolidated net cash flow assessment of Blades , Inc. , and estimate the range of net inflows and outflows for Blades for the coming year . Assume that Blades enters into the agreement with Jogs , Ltd. 3. If Blades does not enter into the agreement with the British firm and continues to export to Thai land and import from Thailand and Japan , do you think the increased correlations between the Jap anese yen and the Thai baht will increase or reduce Blades ' transaction exposure ? 4. Do you think Blades should import components from Japan to reduce its net transaction exposure in the long run ? Why or why not ? 5. Assuming Blades enters into the agreement with Jogs , Ltd. , how will its overall transaction exposure be affected ? 6. Given that Thai roller blade manufacturers located in Thailand have begun targeting the U.S. roller blade market , how do you think Blades ' U.S. sales were affected by the depreciation of the Thai baht ? How do you think its exports to Thailand and its imports from Thailand and Japan were affected by the depreciation ?

Sep 10, 2022
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