At last, as we are opening new subsidiary of Kraft Heinz in Bangladesh, the revenue we make in the

subsidiary will go back to the home country but from the above assumption we can see that due to
change in interest rate and inflation rate in Bangladesh BDT value is rising which is good for us because
by converting the BDT revenue in US dollar revenue, we will get more amount of dollar. For example
before assumption if the subsidiary made a profit of 84.76BDT in return we get $1 but now after
assumption for the same amount of profit in return we will get more than $1.

So, in this case we will use this information to hedge and minimize our loss by selling forward contract.
But on the other hand for the operating running expense the parent company which is in USA needs to
send money to its subsidiary which is in Bangladesh and as BDT value is raising it will result in increasing
the amount of expense in terms of US dollar. For this case we will purchase forward contract so that in
future increase in BDT value would not increase our expense in terms of US dollar.