wesfarmers coopertion Essay

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Current strategy of a division of paramount Australian corporation (Wesfarmers) (Name) (University affiliation) Current strategy of a division of major Australian corporation (Wesfarmers) Wesfarmers is one of Australia’s oldest and most successful diversified companies. It founded in June 1914 as a small farmers' co-operative whose primary purpose was to provide services and rural commodities to Western Australia's agricultural population, Wesfamers commenced her trip to diversification since 1950s with a pioneered program that involved distributing liquefied petroleum gas. Wesfarmers then continued to advance into fertilizer production and distribution in 1984, coal mining, and then on launching insurance…show more content…
If, for example, money must be converted to another currency to make a certain investment, any changes in the currency exchange rate cause that investment's value to either increase or decrease when the investor sells and converted back into the original currency. This is a crucial concept that cannot go undiscussed every time a foreign direct investment subjects. This is especially for a foreign country because changes in the currency rates of the investment target country, where an international enterprise invests, translates into changes in the value of the investment The world of business has it that it is almost impossible for a unified entity or corporation to determine or manipulate the exchange rates of a country or between countries. This is because the factor contributes of currency exchange movements are numerous and include the forces of demand and supply, oil prices and even politics! A corporation, however, can strive as hard as it can, to protect itself from the risks involved in such currency exchange movements. The strategies involved help reduce risks for the corporation. When buying or selling foreign currency, a corporation can either do it as and when it needs to, at the prevailing exchange rate, or try to transact when the currency exchange rate is at an advantage. A remarkably simple form of currency hedging is exchanging the currency in parts. If the corporation is uncertain if the
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