OverviewForeign exchange impacts the profitability of transactions in international markets. It can turn a profitable business into one that loses money and can turn an unprofitable business into one that makes money.In this assignment, you will analyze the impact of foreign exchange on different business scenarios and present your findings in a short business memo.ScenarioYou manage the international business for a manufacturing company. You are responsible for the overall profitability of your business unit. Your company ships your products to Malaysia. The retail stores that buy your products there pay you in their local currency, the Malaysian ringgit (MYR). All sales for the first quarter are paid on April 1st and use the exchange rate at the close of business on April 1st or the first business day after April 1st if it falls on a Saturday or Sunday. The company has sales contracts with different vendors that determine the number of units sold well in advance. The company is contractually obligated to sell 4,000 units for exactly 1.25 million MYR for the first quarter. The break-even point for each unit is $90 in U.S. dollars. Use the following foreign exchange rates:On January 1, the daily spot rate is 3.13 MYR, and the forward rate is 0.317 U.S. dollars/MYR for April 1st of the same year.On April 1, the daily spot rate is 3.52 MYR.PromptUsing the information above, create a short business memo that explains the profitability, viability, and importance of considering foreign exchange on the basis of the scenarios below.Scenario 1: The company uses the spot rate on April 1st to convert its sales revenue in MYR to U.S. dollars.Scenario 2: On January 1st, the company uses that day’s forward rate today to lock in a foreign exchange rate for its expected 1.25 million MYR in sales. This means the company agreed to exchange 1.25 million MYR using the forward rate on January 1st when April 1 arrives.Scenario 3: Another option for the company is to spend the foreign currency and avoid any currency exchange. Because it is a manufacturing company, raw materials are always needed.Specifically, you must address the following rubric criteria:Foreign Exchange Calculations: Determine the profitability of the international business by using foreign exchange calculations for the first and second scenarios.Spend or Save: Discuss what you would need to consider when determining if the company should buy raw materials with the foreign currency in an effort to avoid foreign exchange risk and whether this is a viable option for the company.Conclusion: After determining the result for each scenario, explain the importance to a company’s financial results of considering foreign exchange risk.Guidelines for SubmissionSubmit this assignment as a 250- to 300-word Microsoft Word document. Sources should be cited according to APA style.

Use the work you completed for Parts, I, II, and III with your CLC group to inform your analysis for this assignment.Write a 500-750-word analysis of the significance of these three matrices regarding their relevance for strategic planning. Describe the key information for each and how information from each will influence recommendations for strategy selection, planning, and implementation.Without prematurely determining and formalizing strategic goals and objectives, begin thinking about possible strategies to capitalize and add value to the organization based on the analysis of this information.Be sure to cite three to five relevant and credible sources in support of your content. Use only sources found at the GCU Library, corporate websites, or those provided in Topic Materials.This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.You are required to submit this assignment to LopesWrite. Refer to the LopesWrite Technical Support articles for assistance.