Foreign Exchange Calculations: Determine the profitability of the international business by using foreign exchange calculations for the first and second scenarios.

Spend or Save: Discuss what would need to consider when determining if the company should buy raw materials with the foreign currency in an effort to avoid foreign exchange risk and whether this is a viable option for the company.

Conclusion: After determining the result for each scenario, explain the importance to a company’s financial results of considering foreign exchange risk.