Foreign Exchange Risk Case Study Example | Topics and Well Written Essays - 750 words

Foreign Exchange Risk - Case Study Example Another option to mitigate foreign exchange risk is the adaptation of foreign exchange services from a foreign currency exchange specialist. These specialists include the Canadian Forex and local banks in Canada. These experts will help reduce the risks associated with frequent transfers from Canadian dollars to the US dollar. This is done by entering into Canadian dollars earlier, and banks will only convert it during the payment period, so there will be no risk. The final and recommended option for mitigating risks is the purchase of foreign exchange contracts. In this case, Alliance will pay more cash than required to cover the costs of mitigation. This will cover any risk that may occur between the time when the money was deposited and the time of payment for the equipment to the supplier. For example, the price of equipment is $ 500,000, when the exchange rate is C $ 1.00 = U S 1.00. If the Alliance does not use the forward exchange contract and the payment time occurs when the exchange rate has moved by C $ 1.00 = 0.95 US dollars, then the Alliance will have to pay 526315 as the final price. This is $ 26,315 more than the original amount. But when the Alliance decides to buy a forward foreign exchange contract and which they decide with the bank to be one percent of the amount of Equipment, then the Alliance will have to pay 505,000. Therefore, the design concepts of the alliance will not worry about fluctuations in the exchange rate. They will save more than 21,000 US dollars.

SIM #11 Essay Example | Topics and Well Written Essays - 250 words

SIM #11 - Essay Example Paul expounds on the scope of leadership and the responsibility of every leader. 1 Thessalonians 5:12-24 is an important text because it defines the attitude that people should exhibit towards leaders in the community. Paul puts into perspective a number of issues such as the faint hearted and those who are bound by passion to respond to the call of the community of believers. There are weak believers who act differently from the rest of community of believers2. Paul states that leaders should strive to deal with individuals who are deemed deviant in the community as a consequence of making them have a sense of belonging. Consequently, Paul appeals to the leaders to encourage the faint hearted and the weak. In Mark 10: 42-45 the Bible says that an appropriate service commands respect that is shown through love. In the subsequent passages Paul elaborates on the life of a believer and the various tribulations that Christians face. The apostle Paul tells the believers to rejoice despite the tribulations and advises on the essence of prayer. Additionally, Paul underscores the importance of living a life that is guided by the spirit. He notes that spiritual well-being brings a connection to the divine. Paul also integrates the importance of the gift of prophecy among the believers. Ideally, leaders and the followers should have a relationship that is based on mutual respect and understanding everyones