Monsanto is a publically traded American company that specializes in agriculture. The company aims to help farmers around the world grow crops while using energy, water, and land more efficiently. They believe that innovation has the potential to bring humanity’s needs in balance with the resources of our planet. Their core values are integrity, respect, and transparency. Their researchers and breeders develop products that help farmers have better harvests while using their resources more efficiently. Monsanto currently leads the world market for genetically modified seeds for corn, soybeans and cotton. Monsanto is a fortune 500 company with over 20,000 employees and has facilities in 69 different countries. By having an international presence in the world they are subject to the forex market risk that is associated with their transactions. …show more content…
Some of these market risks include interest rate changes, foreign currency fluctuations and changes in commodity, equity and debt securities prices. The 10-K also state that the company worries about the change in foreign interest rates and the value of the different financial instruments. It is also a worthy note to mention that Monsanto clearly states that they do not enter into the different financial instruments solely on the purpose to gain a profit. With an international presence, Monsanto deals with a multitude of international currency: European euro, Brazil real, Argentine peso, Canadian dollar and Mexican peso are primarily used. Movements in these exchange rates affect Monsanto’s revenue and expenses, assets, liabilities and cash flow. The primary focus of Monsanto, when using financial instruments to transact currencies, is to decrease the volatility that occurs between the exchange