United Parcel Service Financial Challenges in A Developed or Developing Nations

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This article was published in Strategic Management Quarterly:

Gerald, R.V. (2014) United Parcel Service Financial Challenges in a Developed or Developing Nations, Strategic Management Quarterly, Vol. 2(1).


A strong international logistics operation will require that managers be prepared to function effectively and efficiently in a global environment. As a result, the international shipping industry must understand the complexities of the global financial system and volatility of the foreign exchange market. Therefore, multinational corporations are using are derivatives to reduce exchange rate volatilities cause by foreign exchange rates currencies, interest rates fluctuations and other financial risk factors while doing business abroad. Market risk in the international shipping industry has exposed this entity to market uncertainty and local exchange rate risk when operating an international business environment. Therefore, a supply chain manager strategy plan must be able to adapt the local financial market to achieve the organization’s goals and objectives and ensure that they have the resources to over come any market risks caused by the global financial market. This research paper will addresses how international logistics industry will resolve foreign exchange rate risks and interest rate risks while operating in developed or developing nations.