Understanding Exposure Risk Management

Description

The Ford Motor Company manufactures and sells motor vehicles worldwide. Through its worldwide operations, the company is exposed to all types of foreign currency risk. In this assignment, you will review one of Ford’s annual reports, and discuss the types of risk they face and ways the company mitigates risk and exposure.

Prior to beginning work on this assignment,

Review the Automotive Market Risk section of the Ford Motor Company 2020 Annual ReportLinks to an external site., found on page 91 of the PDF (or page 86 of the actual report).

Review Ford’s Diversity, Equity & Inclusion page. Links to an external site.

In your paper,

Explain the three different kinds of market risks Ford has.

Discuss the ways Ford hedge economic and transaction exposures.

Explain why the report does not mention translation exposure.

Discuss at least two ways Ford might mitigate exposure risks.

Discuss how focusing on diversity, equity, and inclusion might help Ford increase its sales globally.

Discuss how Ford can use arbitrage to potentially increase profits or mitigate risks as a global company.The 

  • Understanding Exposure Risk Management paper

Must be three to five double-spaced pages in length (not including title and references pages) and formatted according to APA StyleLinks to an external site. as outlined in the Writing Center’s APA Formatting for Microsoft WordLinks to an external site.

Must include a separate title page with the following:

Title of paper in bold font

Space should appear between the title and the rest of the information on the title page.

Student’s name

Name of institution (The University of Arizona Global Campus)

  • Course name and number

Instructor’s name

Due date

Must utilize academic voice. See the Academic VoiceLinks to an external site. resource for additional guidance.

Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.

For assistance on writing Introductions & ConclusionsLinks to an external site. and Writing a Thesis StatementLinks to an external site., refer to the Writing Center resources.

Must use at least three credible sources in addition to the course text.

The Scholarly, Peer-Reviewed, and Other Credible SourcesLinks to an external site. table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source.

BUS450 – Hedging

Description

Hedging is a risk management tool that provides protection against a given future exposure to foreign exchange. Therefore, understanding hedging in this context is important since hedging operations eliminates all uncertainty within an exchange rate, regardless of variations that may occur in the market. For this discussion forum, imagine that you have been invited to present to non-financial professionals about hedging in the form of a short business memo.

Prior to beginning work on this discussion forum,

Review Writing a Business MemoLinks to an external site..