Assignment Title: CS Publishing
Course Title: International Financial
ManagementExecutive Summary
Canada Specialization Provider (CSP) was a not-for-profit specialized education
provider, offering customized educatio
...
Assignment Title: CS Publishing
Course Title: International Financial
ManagementExecutive Summary
Canada Specialization Provider (CSP) was a not-for-profit specialized education
provider, offering customized educational programs, consulting services, and
associated educational materials to both groups and individuals in Canada.
Whereas CSPub, its subsidiary, dealt with the production and sale of educational
materials that were generated both inhouse and externally. CSPub had started
alongside CSP in Canada in the 1960s, and by the 2000s had already expanded
into the US and Asia.
Initially, both revenues and costs were incurred in Canadian Dollars, and so
exchange rates had not been an issue. However, as US and HK sales grew, the
impact of changes in currency values started to leave its mark on the company’s
financial statements. With more exposure expected as the company planned to
expand further into Asia, the exposure was severe. CSP had experienced a loss
in 2015 which had led to many lay offs and budget cuts, and had not recovered
from the experience, so hedging strategies and processes needed to be put in
place to manage inevitable future risks involving its Asia expansion. Sales in Asia
were facilitated by an informal partnership with a company in Hong Kong, and as
the subsidiary looked to further expand its operations, it had signed a formal
agreement with a company in China. The agreement and all associated work
would be managed through Singapore where CSPub had purchased a facility to
assemble the products to ship throughout Asia. With North American markets
nearing saturation, and Asia becoming a major driver of growth in the educational
materials industry, expanding into the Asian market was a necessary step for thecompany’s survival
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