Abstract
Abstract Significant risk exists for corporations who are involved in foreign property acquisitions that result from foreign currency exchange rate movements. Unless managed properly, foreign currency exchange rate fluctuations may result in considerable adverse changes upon balance sheets, reported profit and loss, cash flows, and die cost of new asset purchases. Several methods of foreign currency risk management are available to firms entering into contracts to purchase or sell hotels located in foreign countries. Some of th ese methods are: foreign currency forward contracts, foreign currency option contracts, shifting currency risks, money market hedges, modifying the price, and netting foreign currency exposure.
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