For some years now, exporting locally made goods towards other countries has had its share of problems. The unique design and the various benefits that each commodity or good has that is unavailable in other countries is the key resource and material that makes it valuable and demandable by most consumers from other countries. The cost of manufacturing, operating and administrative expenses and other needed investments for the finished good are what compose the final item.
For businesses and entrepreneurs, the proper analysis and forecasting of the fluctuation of one currency to the other is something that needs close watch. For one, businesses that rely heavily on the currency fluctuation need to provide the necessary revenue cushion and allowance to be able to get the profit and revenue due from the said business venture. Taking the currency situation for granted is a step in the wrong direction since for all intents and purposes, this may mean that the possibility of encountering losses rather than profits is a reality hence pencil pushing marketers and finance personnel should leave some allocation in the event of such occurrences.
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Originally posted on October 3, 2006 @ 6:01 am