A United States–based company trades extensively with various countries in the eurozone (these countries use the euro). You have been hired as a consultant to evaluate the impact of currency fluctuations on sales in the eurozone in the last few months for this specific company.
Step one of the process is to create an exchange rate table for the daily exchange rates between the euro and the United States Dollar (USD) over the last three months:
What trends do you notice from the exchange rate table?
How might these trends impact the company’s sales in eurozone countries?
What advice would you give to the company to overcome exchange rate challenges and maximize exchange rate opportunities?
A recommended tool to use is Dr. Antweiler’s FC Charts & Plots (v2.16) (Links to an external site.).
In your paper,
Create an exchange rate table.
Analyze the trends in the exchange rate table.
Analyze how these trends may impact the firm’s sales in the eurozone.
Present concrete solutions to the company to overcome exchange rate challenges and maximize exchange rate opportunities.