Skip to Content

Foreign exchange risk is rising for middle-market manufacturers

May 8, 2018 Article 2 min read
Authors:
Lou Longo
When currency volatility is on the rise, middle-market companies that do business with overseas partners need to pay attention to foreign exchange risks. Read more at Industry Week.

Three businessmen discussing foreign exchange risks in a factory setting.

Recent developments in the global trade environment have been coming hard and fast. First, there’s the possible end, or significant renegotiation, of the North American Free Trade Agreement (NAFTA). Then, U.S. steel and aluminum tariffs have raised fears of a potential U.S. trade war. On top of this, political risk has risen in the United States and around the world in places as disparate as Italy and South Africa.

At times like these, when volatility is rising, middle-market companies that trade with overseas partners should pay close attention to foreign exchange risk, something most executives ignore in tranquil times.

Related Thinking

Two tax professionals looking at a mobile phone and walking up stairs.
February 8, 2024

India tax change: Royalty and FTS withholding rates increased

Article 3 min read
American, Russian, and Chinese flags against a blue sky.
December 19, 2023

Economic decoupling: Breaking up is hard to do

In The News 5 min read
Business professionals researching and learning about international tax updates.
December 14, 2023

International updates: Tax news and other global updates for Q4 2023

Article 9 min read