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This is because with such a long term investment we would be expected to generate positive net cash flows in Vietnamese Dong.
As an importer of raw materials and parts, it is to our disadvantage if the value of the currency in which we trade increases, as our import products will become correspondingly more expensive. Conversely, as an exporter you can find yourself at a disadvantage if currency rates fall, as you then run the risk of receiving lower than expected prices for your export products.
1.5.5 Transfer Risks
Our business may face transfer risk. This happens when businesses possess assets that, if converted into another currency, could result in an adverse financial situation...
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