Overview: For this task, you will analyze the financial statement of a specific multinational company and summarize its hedging strategies.
Prompt: First, review the module resources, including the Harvard Business Review case study “F. Mayer Imports: Hedging Foreign Currency Risk,” and then introduce the problem at hand and address the following:
- Current State: What is the current state of the Eurozone—and the political risks and volatility of the Australian dollar (AUD)?
- Efficacy: How effective is F. Mayer’s current hedging practice?
- Procurement: Should F. Mayer leave its Euro procurement unhedged? Why or why not?
- Hedging Strategies: Assume that F. Mayer will not leave its position unhedged; what hedging strategies should the company use in order to protect itsinvestment? Refer to Exhibit 3 in the case and briefly analyze the different hedging strategies for soundness. Refer to the case study, your text, and other course materials to support your responses.Rubric
- Guidelines for Submission: The short paper should follow these formatting guidelines: 2–3 pages in length, double spaced, 12-point Times New Roman font,one-inch margins, and citations in APA style.