Decisions in USA Super Cars - Assignment Example

If the company decides to take loan, it would be better for USASuperCars to accept a sure sum from HSBC in 3 months instead of 12 months. Although, the bank could face risks, it can get profits. To expand their operations and get newer opportunities, organizations would enter foreign markets. When organizations expand, they might need extra financial resources. To get that resource, they might approach number of options including banks for loans. This is relevant to USASuperCars as well. USASuperCars is a company which sells luxury sports cars in its home base of the United States, and also other countries.

It has signed a contract to sell their super cars to customers in 5 countries. So, as it is expanding their operations, it might need financial resources. It has an option to get loan from the HSBC bank, but there are some risks associated with it. That is, as the selling prices are fixed and are dealt in local currencies at the exchange rates prevailing at the time of delivery, uncertainties can arise leading to problems for USASuperCars. At the same time, the financial status of USASuperCars is good.

So, this report focusing on the standard deviation and mean in exchange rates, HSBC’s loan offer, and the outcomes will help USASuperCars and its management to take a correct decision based on statistical analysis. Organizations functioning in any sector would always find both internal and external opportunities to grow. That is, apart from finding opportunities in its home operations, an organization can also find prospects in foreign countries as well (Mellahi, Finlay and Frynas, 2005). However, operating in home operations as well as foreign operations can bring different set of challenges to the organization.

When the currency of the home country of the organization and currency of the entering country fluctuates due to various political and economic factors, it can affect organizations