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Chapter 20 Running Your Own MNC Financing in Foreign Currency- Mexico 1. Given that your business...

Chapter 20

Running Your Own MNC Financing in Foreign Currency- Mexico

1. Given that your business has receivables in a foreign currency (pesos), you may want to consider financing in that same foreign currency to offset the exposure. Compare the recent interest rate of the foreign currency of concern to the U.S. interest rate: Is the foreign interest rate typically higher or lower than the U.S. interest rate? Would you use financing in that currency to offset receivables? Explain.

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Would you use financing in that currency to offset receivables ?

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