International Finance Paper

International Finance Paper
Dominic Fera
University of Phoenix
FIN/325: Financial Analysis for Managers II
Mr. Jeffrey Leeson
July 9, 2005
April 5, 2005
When a company begins a transaction in a foreign currency, it accepts any economic risk due to fluctuating exchange rates. The globalization of the world economy and the devaluation of the U.S. dollar have allowed more American companies to enter the export/import markets. Additionally, many managers who previously avoided these markets are finding that international transactions can make their companies more competitive in marketi…