a) Cozair Inc, an international company based in the USA has 15 subsidiaries around the world.
The Operations Executive, a lawyer by profession is the brother of the Managing Director. The
procedures he has implemented are of grave concern to the Chief Financial Officer (CFO) who
has the task of consolidating the accounts from the subsidiaries. In addition to operating in these
countries the company has bought securities from blue chip companies on some of the stock
markets. The CFO has asked you to provide answers to the follow i. Explain the foreign exchange
exposures the company might face and suggest to the CFO which he should be more concerned
with. 6 Marks ii. Describe three ways of dealing with foreign exposures. 3 Marks iii. Why is the
reduction of exposures important to a portfolio manager? I Marks.
a Cozair Inc an international company based in the USA has.pdf
1. a) Cozair Inc, an international company based in the USA has 15 subsidiaries around the world.
The Operations Executive, a lawyer by profession is the brother of the Managing Director. The
procedures he has implemented are of grave concern to the Chief Financial Officer (CFO) who
has the task of consolidating the accounts from the subsidiaries. In addition to operating in these
countries the company has bought securities from blue chip companies on some of the stock
markets. The CFO has asked you to provide answers to the follow i. Explain the foreign exchange
exposures the company might face and suggest to the CFO which he should be more concerned
with. 6 Marks ii. Describe three ways of dealing with foreign exposures. 3 Marks iii. Why is the
reduction of exposures important to a portfolio manager? I Marks
