Your Firm Has Just Tendered for a Contract in Japan

question 118

Essay

Your firm has just tendered for a contract in Japan.You won't know for 3 months whether you get the contract but if you do, you will receive a payment of 10 million yen a year from now on.You are worried that if the yen declines in value, the dollar value of this payment will be less than you expect and the project could even show a loss.Discuss the possible ways that you could protect the firm against a decline in the value of the yen.Illustrate the possible outcomes if you do get the contract and if you don't.

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Definitions:

Symbols

Objects, signs, or images used to represent ideas or concepts, playing a crucial role in communication and culture.

Abstract

A summary or overview of the main points of a document, article, or research paper, often used to help readers quickly ascertain the paper's purpose.

Transcend Time

To surpass or go beyond the limitations of time, often used in the context of ideas, works, or values that remain relevant and influential across different historical periods.

Sheldon Stryker

An American sociologist known for his contributions to symbolic interactionism and identity theory.