Why didn’t choose others solve the problem? The reason is as follows:
1. The establishment of institute have professional and experienced that related to trade with foreign countries to consult the problem because The Company have to pay cost a lot not worth the benefits and The organizational structure may have a multi-step process to make a waste of time to trading decisions in each
3.Buy the right to purchase or buy the right to sell in the future because the company have to pay more cost which each bank is different. Risk more than Forward Contract. And Purchase rights intend the minimum value to buying or selling rights contract is higher than the Forwards.
4.Management of foreign currency in accordingly in both revenues and expenses (Natural Hedge) because Natural Hedge is manage revenue and expenses Such as determine the revenue and expenses to the same currency and delivered in a matching or similar. However, heart of this solution is matching or matches between cash flow as revenue from one customer came to matching expenses to any partner. If the match is offset perfectly. We can reduce the impact of currency fluctuations but if the transaction was not consistent, it cannot solve the problem and also additional problems.