Risky business
the risk of change in past earnings due to volatility in exchange rates
What is translation risk?
the home of GE's headquarters
What is Boston, MA?
In 2015, this caused GE to lose $950 million dollars in profit
What is a "stronger dollar"?
Spreading out the supply chain to countries where sales occur to decrease foreign exchange risk
What is a natural hedge?
The number of countries that GE has operations in
What is 130?
the bank that GE partnered with to consolidate their trade settlement process
What is "Citibank"?
Locking in an exchange rate for a transaction in the future
What is a foreign foreign exchange contract?
this person is the CFO of GE
Who is "Jeff Bornstein"?
a type of technology that GE is considering to make digital transactions and convert foreign currencies
What is "blockchain or cryptocurrency"?
one of the main objectives of foreign exchange risk management
What is "to minimize losses"?
OR
What is "to not seek profits from currency movements"?
The approximate number of employees that GE has worldwide
What is ~310,000?
True/False: GE conducts some of its transactions overseas in dollars, transferring risk to foreign customers.
What is "true"?