Hauffman Trucking Company Essay Example | Topics and Well Written Essays - 250 words

Hauffman Trucking Company - Essay Examplehe choice of the location is important since, a prime location enables the accompany reap benefits that would have essentially cost the company lots of money to acquire. For example, access to new and efficient technological innovations (Caprio, 2013).Globalization encourages mergers between organizations thus creating bigger companies. This increases the revenue and the value of the organization. The organization gains a larger market share, a decrease in expenses and experiences a decrease in expenses. The prime negative found of globalization is outsourcing. This is the hiring of new staff from outside the organization to the subsidiary companies set up in different countries. This increases the organizations expenditure in provide for the increased number of employees.There are five main factors contributing to exchange rate risks. They include the expectations of the economic growth. An economy responds to a growing cosmos in different ways. If the growth occurs too rapidly, the cost of living will increase due to the unnecessary wages paid. With higher growth comes higher largeness and this increases the exchange judge. On the other hand, deflation, which normally occurs during recession, is a sign of economic stagnation. This lowers the exchange rates. Other factors include, trade balance, central bank actions, employment outlooks and interest rates (Wagner,