ample, Bombardier is an international company, which means that it pays its employees, purchases its raw materials and sells its finished product in a number of currencies. Currently Bombardier has operations or ships its finished products to over sixty countries worldwide. As the exchange rate of one currency in relation to another changes, it exposes Bombardier to a possible loss or gain. For example, if Bombardier had an invoice of 2.5 million French Francs to pay its vendors but during grace periods the exchange rate of the French Franc increases in relation to the Canadian Dollar, Bombardier would have to come up with more Canadian dollars than previously budgeted in order to meet the 2.5 million payment to its vendor. This vulnerability to interest rate fluctuations can make a difference between a profit and a loss for the company.
Exports are another key economic factor that affects organizations that operate in the global environment. For example with regard to aerospace, as of 1993 the
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