RIORDAN MFG’S OPTIONS OF EXPANSION 131

Assume Riordan Mfg is privately held, wants to expand operations, and is faced with three options for expansion:
• Going public through an IPO
• Acquiring another organization in the same industry
• Merging with another organization

Consider and address the following as it relates to all three options should the organization pursue an international location:
- Factors that contribute to exchange rate risks
- Mitigating exchange rate risk