Suppose a U.S. wood-products company has facilities and employees in Canada providing its raw materials (wood), but has most of its sales in the United States.
(1) What are the most important operational and financial risks in this arrangement?
discussion
Note:
I need answer of the following discussion in 250-300 words. Your answer must be proper and 100% original. Must include 1-2 references cited in APA
Discussion:
Suppose a U.S. wood-products company has facilities and employees in Canada providing its raw materials (wood), but has most of its sales in the United States.
(1) What are the most important operational and financial risks in this arrangement?
(2) How can the company pay its Canadian employees, who presumably want Canadian dollars, when its U.S. customers are paying in U.S. dollars?
(3) Furthermore, how can it calculate its profit if revenue is in U.S. currency and most of its costs are in Canadian currency?
In your responses, provide constructive critiques and supplemental insights. Support your critique with sound reasoning and evidence. Just direct on point and be realistic with examples.
