Boeing Is One Of The Largest Aerospace Company Is The World

Topics: United States dollar, Currency, Foreign exchange market Pages: 2 (535 words) Published: January 30, 2015
Boeing is one of the largest aerospace company is the world. Boeing has been a leading manufacturer of commercial jetliners, based in the UAS and it one of the top exporters companies in USA. Boeing delivers custom-made services consist of commercial aircrafts, satellites; launch systems, advanced information and communication systems. The company offices are based in Chicago with has it corporate offices in Chicago and 159,000 working employees from all around the world, Boeing has 12000 commercial jetliners in service worldwide which is almost 1/3 of the world fleet. Foreign exchange risk is the risk that a financer will face on a long term or short term position; it is known tow as a currency risk. The Foreign exchange risk is the effect caused by the currencies fluctuation that will affect the business personality. Big companies like Boeing have operation all around the globe these operations will exposes Boeing to the Foreign exchange risk. This risk is created by the cash inflow of the operations maid by Boeing in different countries due to the difference in currency or production costs. As Boeing is one of the US companies, it records it transactions in US dollars. The inflow and the outflow are valued in US dollar which is an international currency. With all the international operations and trading that Boeing has, it will receives payments in US dollar. That will give Boeing a low exposer for forex risk plus for Boeing cost of revenues and production are recorded in US dollar so the impact caused by the transaction exposure is low tow even if the company has operations worldwide. Boeing sells its productions worldwide; the exposure is created due to the variation in the currency rate, between the US dollar and other currencies. The risk here is that the currency of the other country may strengthen or decline to the US dollar. Translation exposure is a risk caused by foreign subsidiaries for Boeing operations does not have any translational exposure....
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