Whereas one-third of the raw materials continued to be materials Baker Adhesives had in excess supply (those the company had considered selling off) and the rest were on hand, about a quarter of the materials needed to be purchased, and their cost had recently risen by 10%
Exchange Risks
With her newfound awareness of exchange-rate risks, Moreno had gathered additional information on exchange-rate markets before the meeting with Doug Baker. The history of the dollar-to-real exchange rate is show in Exhibit 2. Furthermore, the data in that exhibit provided the most recent information on money markets and an estimate of the expected future (September 5, 2006) spot rates from a forecasting service.