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Let’s imagine that you are the Chief Financial Officer of a British car manufacturer and that...

Let’s imagine that you are the Chief Financial Officer of a British car manufacturer and that your company sells a large number of its products in the US. Your team thinks that the US dollar is going to appreciate (increase) in value compared to the British pound in the next financial quarter. What would you recommend in order to manage the risk of this anticipated change in foreign exchange rates? Be specific.

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value ulhen the dollan appxeciates in thr Bouttsh can maacuer soud be bene Ated fom increase in volume of ean Selling, as it woud make the Can more apforbacle for the Us con sumers Howeverat e Sarno. timeit Same tme it ucaldl make Pound, as the cdelan adlopt citency hedging , s realizathon per cas a bit he compary lowen in terms appueciakes aganst tsh Pound. He he Compony can strategy to maka-the Rutish Paind Constant edia hby doing bene A tingin both the usays - by increase in volume as sel as in eali zatian. this the company would be attan

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