Billabong should have used forward exchange rates to protect itself from the uncertainty of the foreign exchange rate. Selling to foreign parties with a fixed exchange rate at a future date would have protected Billabong from their own currencies appreciation. This would have created the most protective effect on the company; however, Billabong also became far to depended on the foreign exchange rate for profit. The dependence on the foreign exchange rate has the possibility of a high reward but is highly unlikely and unstable to revolve a company’s profits around. cat is crazy to talk to you same i