Research methods Assignment Example | Topics and Well Written Essays - 2250 words

Research methods - Assignment ExampleThe USASuperCars signed a new contract, which would allow it to care its batch of 27 luxury cars to various customers around the globe, primarily in the UK, Japan, Canada, South Africa and the USA. The contract states that the marketing price of the products are fixed and in local currencies at the exchange rates at the eon of the delivery. In the real economic world set up, the exchange rate is marked with high aim of precariousness. Therefore, one, particularly a businessman, cannot simply overlook the idea about the linked benefits and risks to the stated contract. In this event, the HSBC offered to gestate a sure sum of $2,150,000 in return for revenue in local currencies. It is at this record that the work at hand seeks to come up with a decision whether to accept or discard the offer by weighing up the associated benefits and risks. In addition, in the event that the HSBCs offer is accepted, conclusion for which payment schedule is b etter based on the point of view of USASuperCars and HSBC, searching for other dominance risks HSBC will be exposed to, and finally understanding the measures that can be taken in align to at least minimize the exchange rate risk beyond converting all currencies into dollars.Profit synopsis for USASuperCars is vital for this case, prior to deciding which payment option is necessary provided that the offer of HSBC is accepted. Recommendations are provided, which are associated with HSBCs offer.The justification behind the scratch analysis is based on the information of the worldwide order, the quantity and the change price of luxury cars in the local currencies. To ensure the information about exchange rate is right on considered, the mean and standard deviation rate for converting each currency into dollars are included based on the historical data. Based on the assumption that the rates are normally distributed and independent with each other, the profit has the assumption th at it is normally distributed as well. As