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Article: Canadian dollar blues? The strong--albeit now weakening--Canadian dollar has affected Canadian businesses in a variety of ways. The key is to manage this challenge strategically. Here's how a few companies have done so.
- Article from:
- CMA Management
- Article date:
- April 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Society of Management Accountants of Canada. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Ask Michael dos Santos, CMA, FCMA, president and CEO of Montreal heavy machinery manufacturer Flextor Inc., how his company has managed to ride the wave of Canada's strong dollar with nary a scrape and he'll suggest that it was pure, dumb luck.
"When we set up our business, did we plan for exchange cycles? It never even crossed our minds. Lucky. We were lucky," he says now, 13 years after the company opened shop.
Flextor buys products and material from the U.S., and then sells back to the U.S., thereby sidestepping swinging exchanges in the process. While dos Santos says he's convinced many companies, at least in his industry, are doing the same thing, ...