codnaway - 6:16 pm on Nov 5, 2004 (gmt 0) For Example: Good Luck
Buying forward is a good approach, but comes with costs and risk. Another method to reduce the impact of exchange rates is to move some of your expenses to the foreign currency (USD).
If you are selling in USD and get 100, then convert to CAD and only get 80 CAD (just a guess, I don't have the rate handy) then spending that 80 CAD on expenses to buy your product wholesale etc, then 100% of your revenue (the $100) is exposed to the currency exchange. If on the other hand, you buy your product in USD (lets say $50 of the $100 is product cost), then those dollars are not even affected by the exchange.
The more costs you can move to USD, the less you are exposed to the rate. If you initially receive you money in a US account, then it will be simple to shop US and use those funds.