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Headquartered in the U.S., Merck is a leading multinational pharmaceutical company that does business in more...

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Finance

Headquartered in the U.S., Merck is a leading multinationalpharmaceutical company that does business in more than 100courtiers. More than 50 per cent of its sales are made abroad andforeign sales are billed in local currencies. Merck spends largesums of money on research and development which is critical orenhances its competitive strength. A major concern for themanagement is that unexpected foreign exchange losses could curtailits research and development outlays which are essential for itssuccess. So, Merck‟s risk management programme is designed toreduce the likelihood of such an outcome.

a. Explain Merck addressed the issues through various steps whenits risk management programme was put in place.

b. What are the various ways of minimizing foreign exchangelosses

Answer & Explanation Solved by verified expert
4.0 Ratings (576 Votes)
For any big international company such as Merck the risk of international exposure and foreign currency risk is substantial So it established a risk management program wherein following steps were    See Answer
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