CHAPTER FIVE
Managing Currency Exposure
OLD AND AMPLY TESTED WISDOM holds that unless a company’s business is primarily the trading of currencies or commodities, the firm inevitably will lose, and heavily, if it speculates in either. Yet the fluctuating exchange rates of the current world economy make speculators out of the most conservative managements.
Indeed, what was “conservative” when exchange rates were predictable has become a gamble against overwhelming odds. This holds true for the multinational concern, for the company with large exports, and for the company importing parts and supplies in substantial quantities. But the purely domestic ...
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