Description: Iceland’s McDonald’s Corp. restaurants will be closed at the end of the month after the collapse of the krona eroded profits at the fast-food chain, McDonald’s franchise holder Lyst ehf said.
Source: Bloomberg.com
Date: 10/26/2009
Link: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aNNKbYNHF_Og
Questions for discussion:Â
- Explain why businesses that are dependent on imported materials are at greater financial risk during a currency crises?
- What alternatives are available to management besides closing down operations?
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