EZ Lawn Currency Risk (Scenario)
The EZ Lawn Corporation manufactures lawn equipment such as lawn mowers, blowers, and trimmers. The lawn equipment is assembled in the U.S. at a facility in Florida, but the firm outsources inputs from a number of countries, each with varying degrees of economic stability. Given the importance of the firm's sourcing activities, EZ Lawn managers are discussing methods that might reduce the currency risk faced by EZ Lawn.
Which of the following would most likely minimize the currency risk of EZ Lawn?
◦ concentrate all of the EZ Lawn outsourcing to one or two neighboring nations
◦ relocate a team of EZ Lawn managers overseas to stay abreast of currency changes
◦ list EZ Lawn stock on foreign stock exchanges to offset any currency losses
◦ assign an EZ Lawn manager the task of monitoring currency fluctuations
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