Economic Risk faced by Lowes Corporation
The term economic risk refers to a contingency that the business activity of an entity will be affected by exchange rates, government regulations, political instability, et cetera. As for Lowes Corporation, although the company is headquartered in New York, United States, but it has a diversified range of operations in off-shore countries that expose it to the economic risk. For instance, one of the wholly owned subsidiaries of the company, Diamond Offshore Drilling Inc. exposes the company to the economic risk related to foreign exchange fluctuation. The subsidiary is likely to experience exchange losses when revenue received and expenses Continue reading...
