Billabong should have used forward exchange rates to protect itself from the uncertainty of the foreign exchange rate

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