[SOLVED] Management of Foreign Exchange Risk

“The reply must be supported by two or more reliable sources in current APA format and include a biblical application. A minimum of 250 words (excluding the reference list) is required.” Amazon is a U.S. based multinational technology company that was established in 1994.  Their corporate office is located in Seattle, Washington.  The company focuses on offering products like e-commerce, cloud computing, digital streaming, and artificial intelligence. Identify the location(s) in the annual report where the company provides disclosures related to its management of foreign exchange risk.There are several places in their most recent annual report where they provide disclosures related to its management of foreign exchange risk.  The first place in the companies 2019 annual filing with the Securities and Exchange Commission that they mention foreign currency is the section 1A Risk Factors.  They indicate that their operations in foreign countries expose many risks.  This section mentions that there are “limitations on the repatriation and investment of funds and foreign currency exchange ristrictions” (Amazon, 2019, p. 10).  Their expectations of operations may be quite different than what was expected due to the fluctuations in the exchange rate.  Since their expansion into international markets have increased, they may report significant gains or losses on their financial statements.  The company also holds cash equivalents, marketable securities in foreign currencies including British pounds, Euros, and Japanese Yen.      Another place in the companies 2019 annual filing with the Securities and Exchange Commission that they mention of foreign currency is in the Statement of Cash Flows.  It is reported that in 2019, amounts held in foreign currencies were $15.3 billion which was an increase from 2018 at $13.8 billion.Determine the types of hedging instruments the company uses and the types of hedges in which it engages.“Financial instruments provide guidance on the accounting for hedging instruments including those used to hedge foreign exchange risk” (Hoyle et al., 2018).  The two most important financial instruments for hedging foreign exchange risk are foreign currency forward contracts and foreign currency options.  In the Notes to Financial Statements section under financial instruments, it is noted that they engage in equity securities, money market fund accounts, foreign government and agency securities, U.S. government securities, corporate debt securities, asset-backed securities, fixed income securities and equity securities as financial instruments (Amazon, 2019, p. 51)Determine the manner in which the company discloses the fact that its foreign exchange hedges are effective in offsetting gains and losses on the underlying items being hedgedThe company mentions under Item 1A, Risk Factors, that due to fluctuations of products and services being offered, and that operating results may differ from their expectations, that they may have gains and loses on the their consolidated statements of operations (Amazon, 2019, p. 10).From a Christian Worldview, people should handle and manage money properly and do what is ethically and morally right.  It is against God’s word to make things appear better than they are.  In this case, I am referring to the presentation of the financial statements.  “I will instruct thee and teach thee in the way which thou shalt go: I will guide thee with mine eye.” (King James Bible, 2020, Psalm 32:8).


So much stress and so little time? Take care of yourself: let us help you with your task on
[SOLVED] Management of Foreign Exchange Risk
Get a 20% Discount on this Paper
Get Help Now

Haven’t found relevant content or pressed for time? –Don’t worry,  you have a team of Management professionals to help you.

All you need to do is fill in the order form in the upper right corner and upload the files that are crucial for your assignment. Also, don’t forget to specify whether your assignment has to be based upon specific research, theory, method, or program. After that, we will assign the most suitable expert to complete your assignment. You can always chat with your expert and ask any questions you have during the working process.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Do My Homeworkk
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
National Security Intelligence and Security Analysis
Customer 452457, November 3rd, 2021
Customer 452493, April 12th, 2022
M5A1 Outline and Thesis
Paper was late
Customer 452457, November 15th, 2021
The paper was done to my satisfaction. Thnk you.
Customer 452443, November 18th, 2021
Great services.
Customer 452443, November 22nd, 2021
Business Studies
I can't even explain how much your help meant to me. Thnk you always
Customer 452443, November 15th, 2021
Looks good. Thank you!!!
Customer 452503, April 25th, 2022
Excellent services!
Customer 452443, November 11th, 2021
Thank you
Customer 452445, August 20th, 2021
Job done to satisfaction. Thank you!
Customer 452443, October 31st, 2021
Excellent! Followed directions and completed a great paper
Customer 452445, August 22nd, 2021
Although the paper did not make it at the requested time, the writer did reach out to me and asked for a short extension which I was okay with.
Customer 452493, March 16th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat