MGT 3660 Lecture Notes - Lecture 2: Australian Dollar, United States Dollar
2 Dec 2015
School
Department
Course
Professor
Document Summary
Why does the fall in the value of the australian dollar against the u. s. dollar benefit billabong. Because the u. s. is such a big part of billabong"s foreign market, it"s fortunes are very closely connected to the value of both currencies against one another. No they could not have because currency markets are difficult to predict and sharp reversals occur. Although the australian dollar was falling against the u. s. dollar, the sharp turn in currency balance caused this rise in value in australian dollar in 2009. It could not have been predicted: what might billabong had done in order to better protect itself against the unanticipated rise in the value of the. In order to better protect itself, billabong should have found other foreign markets to also be dependent on. It is so heavily impacted by the u. s. currency, since 50% of its sales are from the u. s.
