For firms operating within the global environment, access to capital and its costs and benefits are subject to risk. Among the most important of these risk factors are the diversity of the interest and exchange rates that exist within the diverse national economies. Therefore, it is important for the firm to evaluate these risks prior to making borrowing decisions
The aim of this report is to examine the potential risks
that are likely to arise should the firm pursue their
intended borrowing strategy. Following the outcome of this
examination, the researcher will provide the firm’s board
with recommendations that will identify how the interest and
exchange rate challenges can be addressed in a manner that
will limit their impact on the firm.