Write a 9 pages paper on the business of the USA sports cars. Accordingly, it has been recognized that various short term financial instruments provide the options that help to minimize the possible loss from the transaction. The purpose of the study is to investigate the effect of fluctuation of exchange rates in the revenue of businesses, especially in USASuperCars context. Moreover, the aim of the study is also to investigate the risks that the bank will undertake to measure the adverse effect of exchange rate fluctuations. Correspondingly, the paper intends to analyze the current financial position of the US SuperCars.
Additionally, an assessment is conducted with the aim of having a better understanding of the involvement of the bank in operating its businesses. The USA Sports Cars engaged in selling of luxury sports cars and the HSBC bank as the sources to measure the exchange rates in order to measure the fluctuation rate. Moreover, the fluctuations may either increase or decrease in the given time span. Thus to conclude table has also been drawn in order to reflect from Japan, UK, Canada, USA, and South Africa among others to show the number of cars sold during the period.
Furthermore, current exchange rates are also taken into consideration to measure the profit and loss for the HSBC. USASuperCars is the luxury sports car manufacturer and distribution company. The company is recognized as a global organization having a distribution channel around the world. Besides, a high transaction in the global market has led to a high reliance on the company over the international currency markets volatility and fluctuations. The prime aim of the company is to provide luxury cars to millions of inhabitants across the world. Company fixes the selling prices in terms of local currencies on the basis of the exchange rate that is prevailing during the delivery time. In the current scenario, the company experienced difficulties with respect to uncertainty in the exchange rates. The company is required to select the appropriate measure and fluctuation in the currency to ascertain the risk involved in the dealing.