Exchange rate Essays & Research Papers

Best Exchange rate Essays

  • exchange rates - 5041 Words
    J Econ Finan (2012) 36:766–779 DOI 10.1007/s12197-010-9156-5 Oil prices and exchange rates in oil-exporting countries: evidence from TAR and M-TAR models Hassan Mohammadi & Mohammad R. Jahan-Parvar Published online: 23 September 2010 # Springer Science+Business Media, LLC 2010 Abstract The paper studies the long-run relation and short-run dynamics between real oil prices and real exchange rates in a sample of 13 oil-exporting countries. The purpose of the study is to examine the...
    5,041 Words | 48 Pages
  • Exchange Rates - 492 Words
    Here we discuss about the exchange rates, which is useful for international finance assignment. Exchange Rate is the price of one country's currency in terms of another country's currency; the rate at which two currencies are traded for another. It measures the number of units of one currency which exchange, in the foreign exchange market for one unit of another. Exchange rates are important because, they establish the relationships between the different currencies or monetary units of the...
    492 Words | 2 Pages
  • Exchange Rate - 7437 Words
    Table of Contents 1.0 Abstract 2 2.0 Introduction 3 3.0 Objective of the Study 5 4.0 Literature Review 5 5.0 Contents 8 5.1 Factor That Effect Exchange Rates in Long Run 8 5.2 Exchange rates in short run (A supply and demand Analysis) 10 5.3 Factor that determinant exchange rate 11 5.3.1 Shift the demand for domestic assets 11 5.4 Other Factors that effects exchange rates and its volatility 12 5.4.1 International financial crises 12 5.4.2 Speculators effect 12 5.4.3...
    7,437 Words | 22 Pages
  • Exchange Rate - 5488 Words
    Exchange Rate December 2014 THE EXCHANGE RATE KEY DEFINITIONS AND CONCEPTS 1. How is the exchange rate defined? The exchange rate is the price of a unit of foreign currency in terms of the domestic currency. In the Philippines, for instance, the exchange rate is conventionally expressed as the value of one US dollar in peso equivalent. For example, US$1 = P44.00. In every exchange rate quotation, therefore, there are always two currencies involved. 2. Why is the exchange rate important? The...
    5,488 Words | 21 Pages
  • All Exchange rate Essays

  • exchange rate - 3479 Words
    1. Issue one: Foreign exchange risk and economic implication In the context of international trade and integration, multinational companies have a lot of opportunities to expand and make profits but they are also likely to face new challenges. One of the most risks such firms need to be recognized is foreign exchange exposure which is directly related to foreign exchange rate. 1.1. Possible foreign exchange risk In order to have a comprehensive view regarding foreign exchange risk, this part...
    3,479 Words | 11 Pages
  • Interest rate and exchange rate policies
     LABUAN SCHOOL OF INTERNATIONAL BUSINESS AND FINANCE UNIVERSITI MALAYSIA SABAH LABUAN INTERNATIONAL CAMPUS GB30703 INTERNATIONAL MONEY AND CAPITAL MARKETS INTEREST RATE AND EXCHANGE RATE POLICIES SEMESTER 1, 2013/2014 PREPARED TO: MR. RICKY CHIA CHEE JIUN PREPARED BY: NO. NAME MATRIC NO. HP. NO. 1 MUHAMMAD RIDZWAN BIN ABD RAHMAN BG11110337 013-6604707 SUBMISSION DATE: 10th DECEMBER 2013 Table of Contents LIST OF ABBREVIATIONS...
    4,201 Words | 21 Pages
  • Determinants of Exchange rate - 4280 Words
    1 Table of Contents 1 Introduction – Determinants of Exchange rate ................................................................................. 3 2 Research papers .............................................................................................................................. 4 2.1 Paper -1: Determinants of Exchange Rate Movements ............................................................. 4 2.2 Paper -2: Macroeconomic Determinants of Real Exchange...
    4,280 Words | 70 Pages
  • Exchange Rate Fluctuations - 3220 Words
    Applied Econometrics and International Development. AEID.Vol. 6-1 (2006) DETERMINANTS OF EXCHANGE RATE FLUCTUATIONS FOR VENEZUELA: APPLICATION OF AN EXTENDED MUNDELL-FLEMING MODEL HSING, Yu* Abstract Applying and extending the Mundell-Fleming model, this study attempts to examine the behavior of short-term real exchange rates for Venezuela. It finds that the real effective exchange rate is positively associated with real government deficit spending and negatively influenced by real...
    3,220 Words | 14 Pages
  • Buisiness Implication of Exchange Rates
    BUSINESS IMPLICATIONS OF EXCHANGE-RATE CHANGES BUSINESS IMPLICATIONS OF EXCHANGE-RATE CHANGES Market Decisions On the marketing side, exchange rates can affect demand for a company’s products at home and abroad. A country such as Mexico may force down the value of its currency if its exports become too expensive owing to relatively high inflation. Even though inflation would cause the peso value of the Mexican products to rise, the devaluation means that it takes less foreign currency...
    926 Words | 3 Pages
  • Exchange Rates - IB Economics
    EXCHANGE RATES The exchange rate is the price of one country’s currency in terms of another country’s currency Quoted exchange rates can be either direct or indirect, Direct: home currency per unit of foreign currency 39 Rupees per US Dollars 80 Rupees per Pound Indirect: foreign currency per unit of home currency 0.0255102 US Dollar per Indian Rupee 0.491594 Pound per Indian Rupee Appreciation of Currency Currency Appreciation means that the given...
    1,530 Words | 7 Pages
  • Exchange Rate Volatility and Fdi
    INTRODUCTION Foreign Direct Investment brings various benefits to both investing countries, or home countries, and recipient countries, or host countries. FDI transfers not only financial resources, but also technology and managerial know-how from home countries to host countries. Therefore, FDI are very important for developing countries, or emerging markets, to grow such as G.C.C countries and some Asian countries. For this reason, I tried to study the relationship between FDI and exchange...
    3,544 Words | 12 Pages
  • Exchange Rate and Balance of Payments
    1. We chose Japanese Yen as are benchmark exchange rate because Japan is part of the G-10 Countries with U.S. and one of the major economies in the world. Japan is also a Key U.S. Business Partner in importing and exporting goods and services. Through our findings we have developed our insight of the Japanese Yen being very volatile to the dollar. In the graph shown below, we can conclude that from 1995 till 1999 the Japanese yen was weaker against Dollar. The process has been repeated between...
    1,372 Words | 4 Pages
  • Exchange Rate and Operating Exposure
    Eun & Resnick 4e CHAPTER 9 Management of Economic Exposure How to Measure Economic Exposure International Finance in Practice: U.S. Firms Feel the Pain of Peso’s Plunge Operating Exposure: Definition Illustration of Operating Exposure Determinants of Operating Exposure Managing Operating Exposure Selecting Low-Cost Production Sites International Finance in Practice: The Strong Yen and Toyota’s Choice Flexible Sourcing Policy Diversification of the Market R&D Efforts and...
    3,914 Words | 17 Pages
  • Parity: Inflation and Exchange Rate
    Assignment # 2 – Parity Relationships Due midnight, Wednesday, 7/17 By Class Time on Thursday, 7/18 1. | London | New York | Spot Exchange Rate ($/GBP) | 1.3264 | 1.3264 | Interest Rates | 3.900% | 4.500% | Expected Inflation Rates | 0.650% | 1.250% | a. What is the expected rate of inflation in London? iPC - iBC = PC - BC 4.500% - 3.900% =1.250% - BC PC = 0.650% b. Using Uncovered Interest Rate Parity, what is the value of the expected spot exchange rate...
    484 Words | 2 Pages
  • Exchange Rate Development in Ethiopia
    Exchange rate development in Ethiopia Monetary Development The legal tender currency of Ethiopia was issued on 23 July 1945 by defining the monetary unit as the Ethiopia dollar (E$) with a value of 5.52 grains (equivalent to 0.355745 grams) of fine gold. The linkage with fine gold was in accord with the monetary system established by the Bretton Woods Agreement of 1944. For the five years following the proclamation of the national currency (1945–1950), money supply of the country was...
    5,093 Words | 15 Pages
  • Rate of Exchange and Foreign Investment
    Project report On Rate of Exchange and Foreign Investment The Indian case from 2009-10 to 2011-12 Acknowledgement As a part of PGDM curriculum at Birla Institute of Management Technology, the preparation of this project report has been a unique and rewarding experience. Apart from our efforts, the success of any project depends largely on the encouragement and guidelines of many others. We take this opportunity to express our gratitude to the...
    5,755 Words | 18 Pages
  • Exchange Rate Analysis - 2655 Words
    Table of Contents Table of Contents 2 EXECUTIVE SUMMARY 3 1.0 Background Information 4 1.1 Limitations of Analysis 4 2.0 Data analysis 4 2.1 Foreign exchange rate between AUD and USD (AUD/USD) 5 2.2 Foreign exchange rate between RMB and USD (RMB/USD) 7 2.3 Comparison of exchange rates of AUD/USD and RMB/USD 8 3.0 Relationship between AUD/USD and RMB/USD 10 4.0 Hypothesis testing 11 5.0 Factors Analysis 13 5.1 Inflation rate 13 5.2 Interest rate 13 6.0 The effects of...
    2,655 Words | 9 Pages
  • Usd and Bdt Exchange Rate
    Bangladesh is an emerging country of the South Asian region that has been following the policy of fixed exchange rate with strict restriction on currency convertibility, which has been relaxed a few years ago. As reported in the Central bank’s (Bangladesh Bank) annual reports, Bangladesh has maintained a sustainable economic growth rate between 6 and 7 percents over past several years. The volume of foreign trade increased in 2008 significantly to 36 billion dollars with 22 billion dollars of...
    1,978 Words | 6 Pages
  • Exchange Rate Notes - 474 Words
    Exchange Rate Notes Class Notes Exchange rate can be expressed in two ways, for example: £1 = 1.52 CHF 1 CHF = £0.66 Foreign Exchange (Forex) Market Many currencies float freely on the free market. However, this is a relatively new phenomenon. After the war, major currencies were pegged to each other under the Bretton woods agreement. They were backed up by gold reserves to keep them at this level. Prior to the war they were often pegged to the price of Gold. Prior to the Euro...
    474 Words | 2 Pages
  • Exchange Rate Policy Bangladesh
    BIDS-PRP WORKING PAPER SERIES Exchange Rate Policy under Floating Regime in Bangladesh An Assessment and Strategic Policy Options Working Paper No. 2 Monzur Hossain * Mansur Ahmed∗∗ October, 2009 * Research Fellow, Bangladesh Institute of Development Studies (BIDS) ∗∗ Research Associate, Bangladesh Institute of Development Studies (BIDS) BIDS-PRP WORKING PAPER SERIES Working Paper No. 2 EXCHANGE RATE POLICY UNDER FLOATING REGIME IN BANGLADESH: ...
    13,493 Words | 44 Pages
  • China Currency Exchange Rate
    Question 4a The currency regime adopted by China is neither fixed nor flexible exchange rate system. China has announced in 2005 the “end of its firm peg against the dollar, instead allowing it to trade within a narrow band against a basket of currencies.” China regime is managed floating system where the currency increases very slowly year by year and the China government prevent the currency from changing quickly in the short term. The reason why Chinese government intervene in the...
    344 Words | 2 Pages
  • Exchange Rate Forecasting - 2782 Words
    Exchange rate movement has been an important subject of macroeconomic analysis and market surveillance. Despite its importance, forecasting the exchange rate level has been a challenge for academics and market practitioners since the collapse of the Bretton Woods system. Empirical results from many of the exchange rate forecasting models in the literature have not yielded satisfactory results. This paper is constructed for the purpose of comparing the forecast performance of various competing...
    2,782 Words | 8 Pages
  • Exchange rate system in India
    INTRODUCTION India has witnessed recent episode of excessive volatility leading to sudden and sharp Depreciation of Indian Rupee against US Dollar. In 2013, the Indian Rupee breached the 57 per Dollar mark & reached to 65- its all-time low against Dollar. International trade and investment decisions become more difficult due to volatile exchange rate because volatility increases exchange rate risk. If the participants in international trade are aware about exchange rate risks, they may...
    1,697 Words | 11 Pages
  • Bangladesh Exchange Rate Assignment
    A brief history of Exchange rate of Bangladesh Since Bangladesh was the part of Pakistan called East Pakistan, shared the same currency and trade-policy history as the rest of Pakistan until the liberation of Bangladesh. Bangladeshi taka was created on January 1 1972. Pakistan rupees in circulation remained legal tender until replaced by the taka 1:1 beginning March 4 1972. The taka was set at par with the Indian rupee, and fixed to sterling at Tk 18.9677, or Tk 7.2797 to the United States...
    3,001 Words | 10 Pages
  • Exchange Rate Movements - 1389 Words
    FIN340 304 Tutorial week 3 Questions 1. How can a central bank use direct intervention to change the value of a currency? Explain why a central bank may desire to smooth exchange rate movements of its currency.. 2. Should the governments of Asian countries allow their currencies to float freely? What would be the advantages of letting their currencies float freely? What would be the disadvantages? 3. What is the impact of a weak home currency on the home economy, other...
    1,389 Words | 5 Pages
  • Exchange Rate Forecast Model
    Forecasting the USD/COP Exchange Rate: A Random Walk with a Variable Drift Peter Rowland Banco de la República* Abstract This study develops three exchange rate models as well as a simple statistical model defined as a random walk with a variable drift. The exchange rate models all use the purchasing power parity hypothesis to account for the long-term relationships between prices and the exchange rate, together with error correction models to represent any shortterm dynamics. The models are...
    13,917 Words | 50 Pages
  • Determinants of Exchange Rate - 1598 Words
    Exchange rate determination is Two-way process and following are factors that Influence Exchange Rates Floating rates are determined by the market forces of supply and demand. How much demand there is in relation to supply of a currency will determine that currency's value in relation to another currency. For example, if the demand for U.S. dollars by Europeans increases, the supply-demand relationship will cause an increase in price of the U.S. dollar in relation to the euro. There are...
    1,598 Words | 5 Pages
  • spot exchange rate - 305 Words
    I performed a brief analysis to see the correlation between European Central Bank (ECB) interest rate change decisions on spot €/$ rate using interest rate parity condition. From BGIE class last year, I knew that central bank interest rate decisions have a direct impact on interest rates on deposits. I wanted to see how well interest rate parity predicts the change in spot rates in response to ECB decisions. To do that, I regressed difference in exchange rates between the day of the announcement...
    305 Words | 1 Page
  • Global Financing and Exchange Rate
    Global Financing and Exchange Rate Mechanisms March 07, 2009 Global Financing and Exchange Rate Mechanisms Hard currencies are a currency, usually from a highly industrialized country, that is widely accepted around the world as a form of payment for goods and services. A hard currency is expected to remain relatively stable through a short period of time, and to be highly liquid in the forex market (Investopedia, 2009). The forex market is the largest, most liquid market in the world...
    1,398 Words | 4 Pages
  • Russia Exchange Rate System
    Russia Exchange rate system Russia used to pledge its nominal exchange rate with some main currencies such as US dollar. However, the Russian crisis has forced Russia to develop managed floating exchange rate system, where the exchange rate driven by market forces of the Ruble’s demand and supply with the help of government intervention. With this exchange rate, the government can ensure stability and predictability of ruble exchange rate and prevent abrupt fluctuation of the Ruble rate....
    1,007 Words | 3 Pages
  • Factors that affect exchange rate
    Factors that affect exchange rates. Like any price, the exchange rate deviates from the cost basis - the purchasing power of currencies – under the influence of supply and demand of currency. The ratio of the supply and demand depends on several factors. It reflects connections with other economic categories - cost, price, money, interest, balance of payments, etc. There is a complex of interweaving and nomination of decisive factors. Among them are the following. • 1.The rate of inflation....
    1,186 Words | 4 Pages
  • Effect of Interest Rate on Foreign Exchange Rate
    EFFECT OF INTEREST RATE ON FOREIGHN EXCHANGE RATE (EVIDENCE FROM ASIAN REGION) ABSTRACT: In this article we investigate the impact of a change in U.S. short term interest rates relative to those in some Asian countries like Bangladesh, Thailand, Japan, Pakistan, and China on the bilateral foreign exchange rates between the U.S dollar and each country’s currency. Several factors determine the exchange rate of a country. A higher currency makes a country's exports more expensive and...
    5,765 Words | 21 Pages
  • how appreciation affects interest rates and exchange rates
    1. Explain the how appreciation affects interest rates and exchange rates. How does this influence commodity currency? Should we return to a gold standard? Why or why not? Business dictionary defines an exchange rate as the rate at which one currency can be exchanged for another. In other words, it is the value of another country's currency compared to that of your own. If you are planning a trip to travel abroad this is something that needs to be calculated along the trip, because in order...
    1,102 Words | 3 Pages
  • Economic Effects of the Foreign Exchange Rate
    INTRODUCTION This paper tackles the effects of the foreign exchange rate as a whole and how it affects the country and at the same time how it gets affected. This paper enumerates the advantages and disadvantages of having a strong Peso. The paper also discusses what factors affect the strengthening and weakening of the Philippine Peso. This paper also includes an in depth analysis of how the foreign exchange could affect and gets affected by the economy, the society and politics....
    3,768 Words | 10 Pages
  • Exchange Rate Determination of Indian Rupees
    Exchange rate determination of Indian Rupees: (source: MBA Knowledge base) As we know that Forex market for Indian currency is highly volatile where one cannot forecast exchange rate easily, there is a mechanism which works behind the determination of exchange rate. One of the most important factors, which affect exchange rate, is demand and supply of domestic and foreign currency. There are some other factors also, which are having major impact on the exchange rate determination. After...
    1,146 Words | 4 Pages
  • Impact of Exchange Rate on Imports and Exports
    Impact of exchange rate on Imports and Exports of Pakistan. (2005-2010) Abdullah Hashmi (18016) Wednesday 9-12 Table of Contents 1. Introduction: 3 1.1What is exchange rate? 3 1.2 Floating exchange rate function. 3 1.3 How exchange rate effect imports and exports? 3 3. Methodology: 5 4. Data Collection: 6 5. Data Analysis: 8 6. Research Findings: 8 7. References: 9 1. Introduction: 1.1What is exchange rate? Exchange rate is the currency rate between...
    2,009 Words | 6 Pages
  • The Relationship Between Exchange Rates, Interest Rates
    The relationship between exchange rates, interest rates • In this lecture we will learn how exchange rates accommodate equilibrium in financial markets. For this purpose we examine the relationship between interest rates and exchange rates. Interest rates are the return to holding interest-bearing financial assets. In the previous lecture we have pointed out that as being a financial asset exchange rates tend to adjust more quickly to new information that goods prices. Like exchange rates, interest...
    2,455 Words | 7 Pages
  • Impact of the Financial Crisis on the Exchange Rate
    International Economics and Business Department “Impact of financial crisis on exchange rate” Table of Contents INTRODUCTION 3 1. Comparison of three episodes 5 2. INTEREST RATE DIFFERENTIALS AND EXCHANGE RATE CHANGES 12 Conclusion 17 References 18 INTRODUCTION Financial crises are often associated with significant movements in exchange rates, which reflect both increasing risk aversion and changes in the perceived risk...
    3,846 Words | 11 Pages
  • Foreign Exchange Rate Risk Managment
    Foreign exchange rate risk Foreign exchange rate risk is the potential impact of adverse currency rate movements on earnings and economic value. This involves settlement risk which arises when a banking institution incurs financial loss due to foreign exchange positions taken in both the trading and banking books. Foreign exchange positions and subsequent risk arise from the following activities: ● trading in foreign currencies through spot, forward and option transactions as a market...
    732 Words | 3 Pages
  • Assignment 1-Foreign Exchange Rate
    |SOUTHERN CROSS UNIVERSITY | ASSIGNMENT COVER SHEET For use with online submission of assignments |Student Name: |LIVIA CHIA | |Student ID No.: |22024147 | |Unit...
    1,369 Words | 6 Pages
  • Integrative Problem-Exchange Rate Behavior
    Assignment: Integrative Problem - Exchange Rate Behavior Data: Beginning of year Spot rate of £ = $1.596 Spot rate of Australian dollar (A$) = $.70 Cross exchange rate: £1=A$2.28 One-year forward rate of £1= A$.71 One-year U.S. interest rate = 8.00% One year British interest rate = 9.09% One-year Australian interest rate = 7.00% Question 1 Determining whether triangular arbitrage is feasible and, if so how it should be conducted to make a profit. Background: Triangular...
    1,112 Words | 4 Pages
  • Determination foreign exchange rate In Bangladesh
     To Md.Salim Hossian Department of Business Administration United International University Sub: Request for receiving my Research Paper Dear Sir, It is information to you that, I have tried most to make our research paper more meaningful and relevant .I have a special labor and Knowledge to prepare this term paper. So, it is requested to you for accepting our...
    1,095 Words | 9 Pages
  • Factors That Determine the Currency Exchange Rates
    Factors that Determine the Currency Exchange Rates Exchange rate is often referred to as the nominal exchange rate. It is defined as the rate at which one currency can be converted, or 'exchanged', into another currency. For example, the pound is currently worth about 1.824 US dollars. One pound can be converted into 1.824 dollars. This is the exchange rate between the pound and the dollar. There are four types of currencies can be operated, which are a floating, managed and fixed...
    4,524 Words | 17 Pages
  • Exchange Rate Mechanisms - Currency Hedging
    Exchange Rate Mechanisms Paper - Currency Hedging University of Phoenix Global Business Strategies MGT 448 Oct 05, 2005 Exchange Rate Mechanisms Paper - Currency Hedging Currency hedging involves deliberately taking on a new risk that offsets an existing one, thereby reducing a businesses' exposure to negative change in exchange rates, interest rates, or commodity pricing (Economists.com, n.d.). "Currency hedging allows a business owner to greatly reduce or eliminate the...
    958 Words | 3 Pages
  • Effect of Changes of Foreign Exchange Rates
    Effect of Changes of Foreign exchange Rates Categories of Foreign Currency (FC) transaction and operation; FC Transaction : Local entity enters transaction with foreign entity using foreign currency Example: purchase or sale of products and payment in foreign currency. Lending or borrowing in foreign currency. FC operation: Local entity has branches, subsidiaries, associate or JV in foreign countries. The accounts are in foreign currency. Exchange exposure: the risk of exchange...
    1,254 Words | 6 Pages
  • Business Implications of Exchange Rate Changes
    Business Implications of Exchange-Rate Changes Marketing Decisions Production Decisions Financial Decisions Table of Contents 1 2 3 4 5 6 Page Introduction ........................................................................................................... 1 Marketing Decisions ............................................................................................. 2 Production Decisions...
    2,826 Words | 9 Pages
  • Arbitrage: Foreign Exchange Market and Rate
    Chapter 7 International Arbitrage and Interest Rate Parity Lecture Outline International Arbitrage Locational Arbitrage Triangular Arbitrage Covered Interest Arbitrage Comparison of Arbitrage Effects Interest Rate Parity Derivation of Interest Rate Parity Determining the Forward Premium Graphic Analysis of Interest Rate Parity How to Test Whether Interest Rate Parity Exists Interpretation of Interest Rate Parity Does Interest Rate Parity Hold? Considerations When Assessing Interest Rate...
    6,890 Words | 18 Pages
  • Network Topology of Foreign Exchange Rate
    Modern Applied Science; Vol. 6, No. 11; 2012 ISSN 1913-1844 E-ISSN 1913-1852 Published by Canadian Center of Science and Education Network Topology of Foreign Exchange Rate Shamshuritawati Sharif1,2, Nur Syahidah Yusoff1,3 & Maman A. Djauhari1 1 2 3 Faculty of Science, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia College Arts and Science, Universiti Utara Malaysia, Sintok, Kedah, Malaysia Faculty of Industrial Sciences & Technology, Universiti Malaysia Pahang, Gambang, Pahang,...
    4,419 Words | 14 Pages
  • Effect of Exchange Rates on International Marketing
    Definitions Foreign Exchange Markets Foreign exchange market is a ‘market that trades the currencies of different countries. The foreign exchange market is in actual fact a series of different markets, each exchanging the currency of one nation for that of another nation. A foreign exchange market sets the price of one currency in terms of the other; a price termed the foreign exchange rate, or simply exchange rate’ (www.amosweb.com/cgi-bin). Factors that influence foreign exchange rates are...
    1,658 Words | 5 Pages
  • Business World and Exchange Rate Problems
    Today’s business world is becoming more difficult and complex because of the important numbers of factors to take into accounts. Then, with the globalisation, more and more firms tends to go global. This trend means that the risks are increasing, and have to be monitoring in order to run well. All the transaction are made with money like investment... But, the main problem is that almost all countries have currencies different from each others. It means that their values are not the same, and...
    1,662 Words | 6 Pages
  • Currency and Euro-pound Exchange Rate
    25.3.44. When Honda, a Japanese auto maker, built a factory in Ohio, A. It was engaged in foreign direct investment B. It was engaged in portfolio investment C. It was engaged in a cross-border acquisition D. None of the above. 26.3.45. Government controlled investment funds, known as sovereign wealth funds, A. Are playing a less-important role in international finance following the end of the fixed exchange rate era B. Are mostly domiciled in Asian and Middle Eastern countries. C. Are...
    1,307 Words | 6 Pages
  • Exchange Rate and International Financial Management
     Chapter 1: Overview of International Financial Management Chapter Objective: Understand why it is important to study international finance. Distinguish international finance from domestic finance. 1.1 International VS. Domestic l Domestic Finance à $ $ $ $ l International Finance à $ € ¥ £ l So you simply have some currencies other than $ l What’s up with that? Well.., you have to convert $ to the foreign currency that you might need using (aka....
    389 Words | 4 Pages
  • Foreign Exchange Rate Sensitivity and Stock Price
    FOREIGN EXCHANGE RATE SENSITIVITY AND STOCK PRICE : ESTIMATING ECONOMIC EXPOSURE OF TURKISH COMPANIES INTRODUCTION Variability in exchange rate is a major source of macroeconomic uncertainity affecting firms. After the 1970's, the rapid expansion in international trade and adoption of floating exchange rate regimes by many countries led to increase exchange rate volatility. The firm's exposure to exchange rate risk increased. In the literature three types of exposure under floating exchange...
    1,691 Words | 5 Pages
  • Foreign Exchange-Rate Exposure of Swedish Firms
    JÖNKÖPING INTERNATIONAL BUSINESS SCHOOL J ÖNKÖPING UNIVERSITY Foreign Exchange-Rate Exposure of Swedish Firms BACHELOR THESIS in ECONOMICS Authors: ZAHARI STOYANOV SALEEM AHMAD Head Supervisor PROFESSOR ÅKE ANDERSSON Deputy Supervisor PH.D. CANDIDATE SARA JOHANSSON Jönköping AUTUMN 2006 Bachelor Thesis in Economics Title: Foreign Exchange-Rate Exposure of Swedish Firms Authors: Zahari Stoyanov and Saleem Ahmad Tutors: Professor Åke Andersson...
    16,330 Words | 65 Pages
  • Impact of RMB's Exchange Rate on the Chinese Economy
    China’s perspective Chinese officials argue that their currency policy is not meant to favor exports over imports, but instead to foster economic stability through currency stability. The policy reflects the government goals of using exports as a way of providing jobs to Chinese workers and to attract Foreign Direct Investment (FDI) in order to gain access to technology and know-how. Yuan exchange rate regime could affect China’s economic growth also can through two aspects: the first is...
    1,446 Words | 4 Pages
  • Impact of Foreign Exchange Rate on Stock Market
    Exchange Rate Volatility: Impact on Industry Portfolios in Indian Stock Market K N Badhani*, Rajani Chhimwal** and Janki Suyal*** This study examines the interaction between changes in the exchange rate of Indian Rupee and returns on different BSE-based indices representing the firms of different sizes and industries. In absolute sense, the returns on all the stock portfolios are found to be positively correlated with the external value of Indian Rupee. However, the analysis with an extended...
    7,400 Words | 24 Pages
  • The Effects on China’s Economy Due to Fluctuation of Exchange Rate.
    Topic: The effects on China’s economy due to fluctuation of exchange rate. 1. Introduction China's economy is huge and expanding rapidly. In the last 30 years, the rate of Chinese economic growth has been almost miraculous, averaging 8 percent growth in Gross Domestic Product (GDP) per annum. The economy has grown more than 10 times during that period, with Chinese GDP reaching 3.42 trillion US dollars in 2007. China already has the biggest economy after the United States and most analysts...
    1,345 Words | 4 Pages
  • MANAGEMENT OF EXCHANGE RATE RISK EXPOSURE v2
    MANAGEMENT OF EXCHANGE RATE RISK EXPOSURE  There are number of ways by which exchange rate risk exposure can be managed: - Natural Hedges - Cash Management - Adjusting of Intracompany accounts - International financing hedges and currency hedges through forward contracts, futures contracts, currency options and currency swaps NATURAL HEDGE  - A hedge (risk reduction action) that occurs naturally as a result of a firm’s normal operations.  For example, revenue received in a...
    527 Words | 5 Pages
  • Exchange Rate of the Rupee and Purchasing Power Parity
    Exchange Rate of the Rupee and Purchasing Power Parity Author(s): Ashok K. Nag and Amit Mitra Reviewed work(s): Source: Economic and Political Weekly, Vol. 33, No. 25 (Jun. 20-26, 1998), pp. 1525-1532 Published by: Economic and Political Weekly Stable URL: http://www.jstor.org/stable/4406906 . Accessed: 02/01/2013 03:20 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a...
    7,526 Words | 35 Pages
  • Foreign Exchange Rate Fluctuation on Pricing Decision
    What implication do fluctuations in foreign exchange rates have on the pricing decisions of export marketing managers? Globalization is no longer an abstraction but a stark reality that virtually all firms, large and a small, face. Firms that want to survive in the 21st century must confront all encompassing force that pervades every aspect of business. However, exchange rate fluctuation is an issue that affects the decisions marketing managers make about pricing. Management faces different...
    1,094 Words | 3 Pages
  • The Impact of Exchange Rate Fluctuation on Macroeconomic Performance in Nigeria
    THE IMPACT OF EXCHANGE RATE FLUCTUATION ON MACROECONOMIC PERFORMANCE IN NIGERIA CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY This study is designed to examine the causes of exchange rate fluctuations and their impact on the Nigerian economy since there is scarcely any country that lives in absolute autarky in this globalised world. The economies of all the countries of the world are linked directly or indirectly through asset or/and goods markets. This linkage is made possible...
    22,520 Words | 72 Pages
  • Future Exchange Rate of South Korean Won
    | South Korean Won | | Rochester Institute of Technology Mohamed Waheed- 2/8/2013 | Table of Contents Overview 2 History of Korean Won 2 Macroeconomic Conditions 3 Gross Domestic Production 3 Major Trading Partners 4 Foreign Exchange Reserve and Current Account Surplus 4 Budget deficit 4 Inflation and Unemployment 5 Interest Rate 5 Type of Currency Regime 5 Current Exchange Rate 6 Purchasing Power Parity and Law of One Price 6 Relative Purchasing Power Parity...
    5,213 Words | 14 Pages
  • Factors Affecting the Exchange Rate of Aud/Usa
    Analysis about factors affecting Australian Dollar US Dollar exchange rate (2006- Q1 2010) Project Report Final Project in Banking and Finance (FP 238) Raffles College of Higher Education I. Introduction 2.1. Background Most of the country in the world will have export and import and they will use money to pay for it. Each country will have their different unit of money, which is called as currency. Currency is a medium that is used in the world to be the media as...
    4,001 Words | 12 Pages
  • Relationship Between Exchange Rate and Stock Market
    Pir Mehr Ali Shah University of Arid Agriculture Rawalpindi The Relationship between Stock Prices and Exchange Rate, Evidence from Pakistan Usman Azhar 08-arid-1606 Abid Hussain 08-arid-1608 Faisal Shahzad 08-arid-1620 Usman Fazal 08-arid-1634 MBA Finance University Institute of Management Sciences Dedication We would like to dedicate this accomplishment to our beloved and caring parents, and to our teachers with...
    7,391 Words | 29 Pages
  • The Exchange Rate, Gdp and Kse, a Relationship Anlysis
    Exchange rates, Pakistan’s GDP and KSE’s prices: A relationship analysis I. Introduction Exchange rates, GDP and KSE index 2.1 Exchange rates (ER) are not autonomous in nature, these are determined by the forces of demand for and supply of major medium of currency (mostly US dollar in Pakistan) used in imports and exports trade. Whereas the volumes of imports and changes therein seem to be the major source to determine demand for US dollar in Pakistan, the value and changes in...
    2,547 Words | 10 Pages
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