Effects Of Currency Fluctuations On American Express International Operations

2015 Words9 Pages
Effects of Currency Fluctuations on American Express international operations. In the 2015 annual report, American Express reported a loss of $545 million because of foreign currency translation adjustments. American Express has employees in over 40 countries. Management has an accurate number of employees in each country, the budget for employee expenses, and the exchange rate for that country. However, the unknown factor is unexpected fluctuations in exchange rates. A business cannot afford to withhold payroll because of exchange rate fluctuations. In India, American Express is rated as number two in best places to work. This indicates the company is consistently meeting payroll obligations. American Express has been exchanging currency since the 1800s and provides an international payment service, FXIP to the world. American Express provides an online currency exchange service to its customers and small businesses. To maintain competitiveness, the company must ensure that their service is secure, easy to use and cost effective. There are innumerable and continuous opportunities for the company to take advantage of other companies or businesses that need to manage foreign currency and exchange rates. The opportunities exist in established markets as well as emerging markets. The increase in access and usage of the internet makes it easier to find buyers or suppliers even in remote places ("Online Currency Exchange", 2016). The impact of technology on costs

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