In fact, this is exactly what specialized foreign exchange products allow you to do. I don't have the expertise, the time, or the mandate from my partners and shareholders. A very prudent point of view say the professionals. Realize, however, if your company buys or sells outside Canada, you are already participating in the foreign exchange market whether you like it or not. Accordingly, this five-step process for creating a foreign exchange management strategy is important for almost every business.
Some companies buy expensive capital equipment abroad.
For example, many colour offset printing presses are manufactured in Germany and Japan. A fixed order price for a piece of expensive equipment could inflate substantially through foreign exchange by its date of delivery. A supplier will not likely discount its price to offset your foreign exchange loss. As outsourcing becomes more common, operations can contain many different areas of foreign exchange risk. Distribution is a prime example.