Does Your Business Face Foreign Currency Exposure?

foreign_exchangeThere’s a worthwhile read on NYT Small Business blog “You’re the Boss” particularly if your business has international elements – travel, sourcing of product, overseas sales.

Perhaps the simplest strategy to hedge this risk  is to lock into US$ as the basis of compensation particularly if it seems that the dollar may weaken. Many times this can be negotiated as a purchaser of goods or services, on overseas sales this practice can be a bit more problematic.

Read the article.

I’m no economist yet it is my personal view that small businesses will face more exposure in this respect over the near to mid-term principally attributable to the magnitude of Quantum Easing and our National Debt that now exceeds GDP.  Get good advice.  Unchecked, my view is that the US$’s position as the de facto world currency is at risk.  I remain ‘no economist‘  but I don’t think that would be a positive.

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