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Currencies Effects on Global Market

Words: 1642 Length: 5 Pages Document Type: Research Proposal Paper #: 23770924



eferences

Antweiler, W., the EUO - Europe's New Currency, the University of British Columbia, Sauder School of Business, 2001

http://fx.sauder.ubc.ca/euro/last accessed on July 21, 2008

Vatahov, I., Bulgaria's Prospects of Joining the Eurozone, the Sofia Echo, March 20, 2006

Waterfield, B., Bulgaria Threatens EU Treaty with Veto Over Euro, Telegraph

http://www.telegraph.co.uk/news/worldnews/1566069/Bulgaria-threatens-EU-treaty-veto-over-Euro.htmllast accessed on July 21, 2008

Bulgaria and the Euro, Official Website of the European Commission, 2008, http://ec.europa.eu/economy_finance/the_euro/your_country_euro8956_en.html. Ast accessed on July 21, 2008

Economic and Financial Affairs, Official Website of the European Commission, 2008, http://ec.europa.eu/economy_finance/the_euro/index_en.htm?cs_mid=2946last accessed on July 21, 2008

US Dollar to Euro Currency Exchange Forecast, the Financial Forecast Center, 2008, http://www.forecasts.org/euro.html. Ast accessed on July 21, 2008

Antweiler, W., the EUO - Europe's New Currency, the University of British Columbia, Sauder School of Business, 2001

Economic and Financial Affairs, Official Website of the European Commission, 2008

US Dollar to Euro Currency Exchange Forecast, the Financial Forecast Center,…… [Read More]

References

Antweiler, W., the EURO - Europe's New Currency, the University of British Columbia, Sauder School of Business, 2001

http://fx.sauder.ubc.ca/euro/last accessed on July 21, 2008

Vatahov, I., Bulgaria's Prospects of Joining the Eurozone, the Sofia Echo, March 20, 2006

Waterfield, B., Bulgaria Threatens EU Treaty with Veto Over Euro, Telegraph
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Hard and Soft Currencies

Words: 967 Length: 3 Pages Document Type: Term Paper Paper #: 20591709

Soft Currencies

The online encyclopedia of financial terms known as Investopedia puts it quite bluntly. A soft currency is simply another, a 'softer' or less pejorative name for a weak or unstable currency. "There is very little demand for this type of currency" amongst investors, because its values often fluctuate, making international businesses unwilling to invest in countries with soft currencies. ("Soft Currency," 2005) Soft currency nations make it difficult for companies to make money, because goods are sold in a currency with an unstable value, and local financing is difficult to obtain. Currencies from most developing countries are considered to be soft currencies. A soft currency is also called a vulnerable currency because tends to fall in value on foreign-exchange markets.

Often, countries such as Latin American nations with heavy debt, or the former Soviet Block countries are used as the paradigmatic examples of soft currency nations. Their currencies…… [Read More]

Works Cited

Hutchinson's Encyclopedia. (2005) "Soft Currency." Retrieved 12 Jan 2005 at http://www.tiscali.co.uk/reference/encyclopaedia/hutchinson/m0021839.html

Investopedia. (2005) "Hard Currency." Retrieved 12 Jan 2005 at  http://www.investopedia.com/terms/s/softcurrency.asp   http://www.investopedia.com/terms/h/hardcurrency.asp 

Investopedia. (2005) "Soft Currency." Retrieved 12 Jan 2005 at
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Reserve Currencies With Specific Reference to How

Words: 531 Length: 2 Pages Document Type: Essay Paper #: 18140540

reserve currencies, with specific reference to how an asset manager should approach the issue of diversifying into multiple reserve currencies in order to achieve better stability in asset value.

hile the U.S. dollar and the euro are the world's two leading reserve currencies, two new currencies have been added by the IMF to the list of reserve currencies. These are the Canadian dollar and the Australian dollar, both being commodity-driven currencies whose stock has risen significantly in the past decade, in part because of the commodity market and in part because those two countries have robust banking sectors and therefore avoided the worst of the 2008 global recession (RT, 2013). This paper will examine the issue of reserve currencies. For a company doing business internationally, is there any merit to using secondary reserve currencies like the aforementioned CAD and AUD, or the Swiss franc, British pound or yen for that…… [Read More]

Works Cited:

RT. (2013). IMF to add CAD and AUD as reserve currencies; which one's next? RT.com. Retrieved April 13, 2013 from  http://rt.com/business/imf-reserve-currencies-909/ 

Frolova, M. (2013). Will the world get new reserve currency? The Voice of Russia. Retrieved April 13, 2013 from http://english.ruvr.ru/2013_01_18/Will-the-world-get-new-reserve-currency/

Chovanec, P. (2013). Is the Chinese renminbi the next global reserve currency? The Atlantic. Retrieved April 13, 2013 from  http://www.theatlantic.com/china/archive/2013/03/is-the-chinese-renminbi-the-next-global-reserve-currency/274454/
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Analysis of various currencies

Words: 639 Length: 2 Pages Document Type: Essay Paper #: 91009422

Euro before Brexit has maintained a higher value than the dollar since its creation. However, post-Brexit it depreciated slightly from 0.9109 and now stands at 0.88260 compared to the U.S. Dollar value of 1, meaning it appreciate in value within the time span of one month. The Australian Dollar has maintained a lower value than the U.S. Dollar. However, in the month of August it hit a dip of 1.29, appreciating in value. The same thing happened to the Canadian Dollar, which has always had lower value than the U.S. dollar but saw an increase in value going down to 1.28637 from 1.3212. The Japanese Yen took the same route appreciating in value from 106.55 to 100.18. The same as well for the Chine Yuan which started in July with 6.68 and now stands at 6.64879.

In regards to 4 years ago, the euro maintained a similar value at 0.82.…… [Read More]

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Dark Coins and Crypto Currencies

Words: 2519 Length: 8 Pages Document Type: Assessment Paper #: 79224305

Crypto Currency

Cryptocurrency

Crypto is a term that is an abbreviation for cryptography. In accordance to Vacca (2010), the word cryptography emanates from two words crypto and the Greek term graphikos. The former means a secret that is hidden or concealed while the latter means for writing. The two words when joined together mean a concealing place for notions, words, images and sounds. A cryptocurrency is form of exchange similar to normal currencies for example Euros, Dollars, and Pounds but are created purposefully for exchanging digital data and information through a procedure that is made conceivable by means of particular ideologies of cryptography. In essence, cryptography is employed in safeguarding the transactions and to regulate the generation of new coins. The original or the initial cryptocurrency that was formed and generated is Bitcoin which was unveiled in the year 2009. In the present day, there are numerous other cryptocurrencies which…… [Read More]

References

Vacca, J.R. (2010). Network and System Security. United Kingdom: Elsevier.

Cuthbertson, A. (2014). Darkcoin: The 'Perfect E-Cash' Cryptocurrency Emerging from the Dark Web to Trump Bitcoin, International Business Times. Retrieved from:  http://www.ibtimes.co.uk/darkcoin-perfect-e-cash-cryptocurrency-emerging-dark-web-trump-bitcoin-1472144 

Higgins, S. (2014). How True Anonymity Made Darkcoin King of the Altcoins, CoinDesk. Retrieved from:  http://www.coindesk.com/true-anonymity-darkcoin-king-altcoins/ 

Tonewsto, A. (2014). Time for Islamic Law to Face the Bitcoin Question, ToNewsTo. Retrieved from: http://www.tonewsto.com/2014/10/time-for-islamic-law-to-face-bitcoin.html
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US Dollar vs Other Currencies Over the Last Five Years

Words: 985 Length: 3 Pages Document Type: Term Paper Paper #: 66146410

Exchange ate Analysis

The author of this report is to follow the order of Dorchester Inc. And analyze the exchange rates for three different countries. The author will use the United States Dollar (USD) as the common currency and then compare/contrast the exchange rates of the dollar against the Euro, the Yen and the Australian Dollar. All three will be looked at over the last five years using the Bloomberg website. While one would expect these three charts to be at least somewhat similar, they are actually quite different and no two of the three are remotely alike.

The USD/YEN rate, which compares the currencies of Japan and the United States, shows some very sharp activity over the recent years. Of course, 2010 marked a year where the United States and much of the rest of the world was in a sharp recession. While the worst was from late 2007…… [Read More]

References

Bloomberg. (2014, September 29). USD to JPY Conversion Chart. Bloomberg.com. Retrieved September 29, 2014, from  http://www.bloomberg.com/quote/USDJPY:CUR/chart 

Bloomberg. (2014, September 29). AUD to USD Conversion Chart. Bloomberg.com. Retrieved September 29, 2014, from  http://www.bloomberg.com/quote/AUDUSD:CUR/chart 

Bloomberg. (2014, September 29). EUR to USD Conversion Chart. Bloomberg.com. Retrieved September 29, 2014, from  http://www.bloomberg.com/quote/EURUSD:CUR/chart
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Proper metrics of economic performance

Words: 755 Length: 2 Pages Document Type: Research Paper Paper #: 65041634

Currency Exchange ates

The author of this brief report has been asked to look at the subject of currency exchange rates and what they mean in terms of fiscal policy and the overall economic health of a country. The questions that will be answered will include whether the currency exchange rates for a country are an economic barometer of a country, the identification of an exchange rate and the comparison of its rate to the United States dollar and the primary factors that lead to the rate of exchange when it comes to comparing one country to another. While the currency exchange rate is indeed a good overall metric to look at when it comes to economic health, there are other figures and milestones that should get just as much, if not more, weight when it comes to ascertaining the economic health of a country.

Analysis

As for whether currency…… [Read More]

References

Bergen, J. (2004). 6 Factors That Influence Exchange Rates. Investopedia. Retrieved 7 September 2016, from  http://www.investopedia.com/articles/basics/04/050704.asp 

Wheeler, B. & Hunt, A. (2016). Brexit: All you need to know about the UK leaving the EU - BBC News. BBC News. Retrieved 7 September 2016, from  http://www.bbc.com/news/uk-politics-32810887
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Exchange Rate Basic Questions

Words: 585 Length: 2 Pages Document Type: Essay Paper #: 47809821

Currency

Appreciate, depreciate

Changes in the spot rate of exchange between two countries can occur as the result of a change in the relative interest rates in those countries, a change in the balance of trade between those countries and changes in the inflation rates in those countries (Van Bergen, 2015).

The two that are most closely followed are the differences in the interest rates, and the differences in the inflation rates.

A forward is a contract that is written between a party and a counterparty, to exchange currency in a set amount at a set rate in the future. This is proprietary between the parties. A future is publicly-traded. So while it also sets a future date and price for a currency, it is publicly traded, the dates do not change, and the amount is fixed -- to increase the amount you have to buy or sell more futures.…… [Read More]

References

Van Bergen, J. (2015). 6 factors that influence exchange rates. Investopedia. Retrieved December 23, 2015 from  http://www.investopedia.com/articles/basics/04/050704.asp
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International Financial System

Words: 746 Length: 3 Pages Document Type: Capstone Project Paper #: 94888039

Soros

International Currency Markets

How did George Soros make money in the international currency markets? as it something to do with his understanding of the international financial system, or just good luck?

Hungarian-born George Soros started making a name in financial speculation in the late 1960s, when he started investing with his own fund known as the Quantum Fund. Soros's speculations began making big news and he was able to gather a rather large following. The bulk of his fortune came from attacks on major currencies. For example, he was able to off major attacks on the currencies of Great Britain and Italy by speculating against them. Soros would bet against the currencies on the exchange rate market in a big way. The news of Soros's moves would also gather a lot of publicity that furthered his cause. Once the market knew that Soros had bet against these countries then…… [Read More]

Works Cited

Baby Pips. (N.d.). How You Make Money in Forex. Retrieved from Baby Pips:  http://www.babypips.com/school/how-you-make-money-in-forex.html 

Delaney, D. (2008, June 25). Currency Forex Trading. Retrieved from Ezine:  http://ezinearticles.com/?Currency-Forex-Market-Trading-How-Do-People-Make-Money-From-It?&id=2905108
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International Monetary Economics

Words: 2932 Length: 10 Pages Document Type: Term Paper Paper #: 90325702

Barry Eichengreen (2011) has speculated that the U.S. dollar may be on the decline as the world's vehicle currency. The dollar has performed this role since at least Bretton oods, when the financial and political might of the United States allowed it to take the lead in the global financial system from Great Britain. However, that lead is being challenged today by two other currencies. One is the euro, which derives from the Eurozone, a basket of nations that has an economy around the same size as the United States. The other is from the Chinese yuan, a currency that is pegged to some degree to the U.S. dollar, but which is backed by the world's third-largest economy (behind the U.S. And Eurozone) and one that is growing rapidly. The creation of the euro immediately fuelled speculation that it would overtake the dollar as the world's vehicle currency, and the…… [Read More]

Works Cited:

Devereux, M. & Shi, S. (2008). Vehicle currency. University of Toronto working papers. Retrieved November 29, 2011 from  http://ideas.repec.org/p/tor/tecipa/tecipa-315.html 

Eichengreen, B. (2011). Why the dollar's reign is near an end. Wall Street Journal. Retrieved November 30, 2011 from  http://online.wsj.com/article/SB10001424052748703313304576132170181013248.html 

Goldberg, L. & Tille, C. (2005). Vehicle currency use in international trade. Federal Reserve Bank of New York, staff report #200.

Lim, B. & Qing, K. (2011). China to step up ASEAN yuan trade settlement. Reuters. Retrieved November 29, 2011 from  http://www.reuters.com/article/2011/10/20/us-china-economy-yuan-idUSTRE79J2JR20111020
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Factors That Positively Affect the Yuan

Words: 3619 Length: 12 Pages Document Type: Research Paper Paper #: 77738730

8% as compared to the dollar in the start of the last year to January this year. The value of Yuan has improved even with the fall of other emerging economies. The loss of competitiveness that resulted can be best demonstrated by a ratio that has been calculated by the Hong Kong Monetary Authority, which makes a comparison of Yuan with the currency of the other emerging markets that are in competition with China. It is important to note here that the competitors of China are the countries that trade against it, and not necessarily the countries that trade with it. The index calculated by the authority demonstrates that Yuan has been rising over 13% in the year to January. As for January alone, the value of the Chinese currency has risen by 2.6%.

The authorities of China have not said that they had made a move in to weaken…… [Read More]

References

Hefeker, C., & Nabor, A. (2002). Yen or Yuan? China's role in the future of Asian monetary integration. HWWA Discussion Paper.

Kent, C. (2013). USD is dead: China caps its dollar holdings and plans crude oil futures priced in yuan. Hang The Bankers. Retrieved from  http://www.hangthebankers.com/usd-is-dead-china-caps-its-dollar-holdings-plans-crude-oil-futures-priced-in-yuan/ 

Leising, M., & Li, F. (2013). China to Free Yuan in 5 Years, Says Hong Kong Exchanges' Li. Bloomberg. Retrieved from  http://www.bloomberg.com/news/2013-03-13/china-to-free-currency-in-5-years-says-hong-kong-exchanges-li.html 

Mallaby, S., & Wethington, O. (2012). Future of the Yuan: China's Struggle to Internationalize Its Currency, The. Foreign Aff., 91, 135.
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Planning Control and Risk

Words: 1786 Length: 6 Pages Document Type: Research Paper Paper #: 72558062

Wal-Mart Accounting and Finance

Determine whose rate of return (i.e., local or parent currency returns) Wal-Mart should use when evaluating foreign direct investment opportunities and justify the position.

Foreign Direct Investment (FDI) is an international flow of capital that provides a parent company or multinational organization with control over foreign affiliates. The behavior of exchange rates influences FDI activity. Exchange rates are defined as the domestic currency price of a foreign currency. Exchange rates can influence both the total amount of foreign direct investment that takes place and the allocation of this investment spending across a range of countries (Bogoslaw, 2009).

Wal-Mart is among many multinational companies that have expanded production and distribution networks globally to take advantage of opportunities for higher local rates of return, market share, and accessibility to production inputs (Nathan, 2012). This -- along with foreign government import restrictions, opening of new markets and invitation for…… [Read More]

References

Bogoslaw, D. (2009). Emerging Markets: Time to Invest?. Businessweek Online, 8.

Huang, Q., Nijs, V., Hansen, K., & Anderson, E. (2012). Wal-Mart's Impact on Supplier Profits. Journal Of Marketing Research (JMR), 49(2), 131-143. doi:10.1509/jmr.10.0256.

Marshall, J. (2000). Minor Change, Big Impact. Financial Executive, 16(6), 11.

Nathan, A.J. (2012). Wal-Mart in China. Foreign Affairs, 91(3), 190-191.
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Translation Reporting and Prices

Words: 1971 Length: 6 Pages Document Type: Research Paper Paper #: 26321799

Translation, eporting, And Prices

Briefly describe the corporation you researched.

The organization researched is a multinational called Walmart. The chain store is a retailer organization whose home office is located in America. The company operates by providing products to its customer through a chain of retail outlets. The public owned organization is the largest in the global market. The company has grown over the years through implementing policies that allow it to sell at a lower price that its competition. The company is the largest retailer is the globe with majority of its shares held by the public. The founding family still has a controlling share of the business with the family controlling over 48% of the shares. The company founded in 1962 and incorporated in 1969 is among the most successful companies in the globe. Its headquarters is located in Arkansas and is currently the largest grocery retailer in…… [Read More]

References

Akta?, R., & Kar?

n, M. (2011). Timeliness of Reporting and the Quality of Financial Information. International Research Journal Of Finance & Economics, (63), 71-77.

Albuquerque, R., De Francisco, E., & Marques, L.B. (2008). Marketwide Private Information in Stocks: Forecasting Currency Returns. Journal Of Finance, 63(5), 2297-2343.

Bartov, E. (1997). Foreign Currency Exposure of Multinational Firms: Accounting Measures and Market Valuation. Contemporary Accounting Research, 14(4), 623-652.
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Impact of Renminbi Appreciation on China's Trade

Words: 845 Length: 3 Pages Document Type: Methodology Chapter Paper #: 66254024

MB

The Chinese currency was selected as the focus of this study for several reasons. The primary reason behind this selection is the rising importance of the Chinese currency's valuation compared to other major world currencies. This is because of China's already large and still-growing trade presence in all global markets and the artificial nature of its currency's valuation, as the government manipulates the exchange rate for the enminbi by tying it to certain other currencies rather than allowing it to "float" with market forces as do most other countries in the developed and developing world (India Times 2010). Despite this artificial hold on the currency, however, the enminbi has been allowed to appreciate in value at an increasing rate, and this is beginning to have an effect on the significant trade surplus that the country has long maintained (India Times 2010). The fact that China is the world's second…… [Read More]

References

India Times. (2010). U.S.-China trade and currency row rumbles on at APEC summit. Accessed 27 January.  http://economictimes.indiatimes.com/news/international-business/U.S.-China-trade-and-currency-row-rumbles-on-at-APEC-summit/articleshow/6921709.cms 

Lin, J. (2004). Lessons of China's Transition from a Planned Economy to a Market Economy. Leon Kozminski Academy of Entrepreneurship and Management (WSPiZ) and TIGER Distinguished Lectures Series n. 16.
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Eurozone Maastricht Treaty Euro Zone Treaty the

Words: 3044 Length: 10 Pages Document Type: Essay Paper #: 71231999

Eurozone Maastricht Treaty

Euro zone Treaty

The European Community established the convergence criteria. These criteria was established in order to allow its EU Member states to take part in the Euro Zone, and using the Euro, as an official currency. The members of the European Union formed the Maastricht Treaty in 1992. The principle goals of the treaty were to establish an economic and monetary union, strengthen the democratic legitimacy of its institutions, better the effectiveness of its institutions, come up with the community social dimension, and also establish a unified foreign and security policy (Charles 1998).

The criteria contain several principles governing inflation rates, government finance, exchange rate, and long-term interest rates. The percentage points for inflation rates should not be 1.5 higher than the average the top three members states in performance of the EU. Government finance covers both the annual government deficit and the government debt. Under…… [Read More]

References

Charles K. (1998). Interest Rates: A Decision-Making Approach. New York, NY: Dryden

Press

David, J.H. (1999). "Advertising's Overdue Revolution" Speech delivered at the week

New York, NY: John Wiley & Sons
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Managing Exchange Rate Risk

Words: 980 Length: 3 Pages Document Type: Capstone Project Paper #: 86144357

Managing Exchange ate isk

For a number of multinational corporations, currency fluctuations can pose an extreme risk for them. This is because of sudden changes and dramatic amounts of volatility inside the marketplace can have a negative effect on their bottom line results. When this happens, there is a realistic possibility that these challenges could negatively impact their financial position and ability to compete inside many different markets. (Berger, 2011)

In the case of Fed Ex, the company has operations around the globe and is one the larger overnight package delivery services. This means that sudden shifts in the currency could negatively impact their earnings. To fully understand the overall scope and the way they are able to deal with these challenges requires focusing on how this impacts their operations, options financial managers can use to manage it and the benefits / drawbacks of these strategies. Together, these elements will…… [Read More]

References

Fed Ex. (2013). Yahoo Finance. Retrieved from:  http://finance.yahoo.com/q/pr?s=FDX+Profile 

Fed Ex First Quarter Results. (2012). IPC. Retrieved from:  http://www.ipc.be/en/Newsroom/General%20news/FedEx%20reports%20first-quarter%20results 

Berger, A. (2011).Case Study Fed Ex Corporation. Nordstadt: Verlag.

Grady, G. (2010). Foreign Exchange Risk Management Methods. E Zine Articles. Retrieved from  http://ezinearticles.com/?Foreign-Exchange-Risk-Management-Methods&id=3047383
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Functions of the International Monetary System a

Words: 1043 Length: 3 Pages Document Type: Essay Paper #: 76021684

functions of the International Monetary system, a few significant institutions which deal with foreign currency as well as conclude on which system of exchange rates is more useful in the corporate world.

History of the International Monetary System:

In the start of the economical world, people were commonly in the habit of using the barter system to purchase goods that were in need. With time though, the system of trading gold and silver coins started to evolve. Around the 19th century, officially, countries started issuing themselves a basic currency. This marked as the beginning of the modern day monetary system of trade.

In the Pre-World War era, money unions evolved which enabled people of different countries to easily exchange currencies. In this period of time, there was a low level of financial crisis and economies were growing steadily. However, with the World War going on, global trade and the flow…… [Read More]

References:

Eichengreen, B. (2008). Globalizing capital: A history of the international monetary system. Princeton University Press.

Stein, J.L. (1997). Fundamental determinants of exchange rates. University of Oxford.

The World Bank (2005). Getting to know the world bank: A guide for young people. The World Bank

Thornton, R.C. (2001). The nixon-kissinger years: Reshaping America's foreign policy. Paragon House.
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Exchange Rate Issues for Deere

Words: 776 Length: 2 Pages Document Type: Term Paper Paper #: 66662973

Finance

Managing Financial isk including Currency Exchange ate isks

Deere and Company are suffering as the string dollar is impacting negative on sales in the Euro zone. The firm is suffering not only due to the exchange rate, but also the high level of competition from other European firms that are operating in the Euro.

If companies operate across international boarders they will face risks associated with exchange rate movement. In the case of a strong home currency, this will make the goods more expensive to purchase if the pricing is based in the home currency. The basing of the price on the dollar, even if it is converted to Euro's effectively passes the risk to the purchaser. The impact can be the price becoming uncompetitive, especially when there are firms that are basing their pricing structure on the same currency as the purchasers.

The firm may deal with the…… [Read More]

References

Howells P.G.A, Bain, K, (2007), Financial Institutions and Markets, London, Longman

WalMart, (2014), WalMart Annual report, accessed at  http://stock.walmart.com/annual-reports
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PPP Group

Words: 1134 Length: 3 Pages Document Type: Case Study Paper #: 31452688

currency risk to which the PPP Group was exposed. The paper also considers their options for currency risk management, in particular evaluating how PPP Group can manage their translation exposure risk.

Types of Currency Risk

The PPP Group's international transactions subject the firm to currency risk or exchange rate risk which arises with the potential change in the exchange rate of EUR against USD. The PPP Group is exposed to three kinds of currency risk that must be managed: transaction risk, translational rick and economic risk. Transaction risk is associated with the time delay that occurs between PPP Group's entering into contracts to purchase paper supplies and the actual contract settlement. PPP Group is also exposed to translation risk which the is the risk of adverse effects on their financial statements, possibly affecting the company's assets, liabilities, equities or income, due to changes in currency exchange rates. PPP Group is…… [Read More]

Bibliography

Financial Accounting Standards Board, 1981. Foreign currency translation. [online] Available at: [Accessed 13 December 2011].

FTMandate, 2005. Reducing risk by currency hedging. [online] Available at: [Accessed 13 December 2011].

Moore, M., 2006. Measuring/Managing translation and transaction exposure. [online] Available at: [Accessed 13 December 2011].

U.S. Department of Commerce, 2008. Foreign exchange risk management. [online] Available at: [Accessed 13 December 2011].
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Future of the Dollar Dollar Dollar Is

Words: 3179 Length: 10 Pages Document Type: Term Paper Paper #: 18497791

Future of the Dollar

dollar ("dollar")

is the world's reserve currency of choice, but at various points in its history, critics have pointed to other currencies as potential vehicle currencies of choice. hile in the 1970s or 80s it might have been the yen or the deutschmark, the creation of the euro in 1999 brought a new competitor onto the scene. In its first few years, the euro became increasingly popular. ith the Eurozone having an economy nearly as large and robust as the American economy to back it, the 'common currency' began to make inroads as the world's vehicle currency. Nations with closer ties to Europe than to the United States were among the first to make the switch, but many major nations have some operations (debt issues, for example) in euros. Today, there is also some speculation that the yuan could take over as a vehicle currency, or…… [Read More]

Works Cited:

CIA World Factbook. (2011). GDP (Purchasing Power Parity). Central Intelligence Agency. Retrieved November 24, 2011 from  https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html?countryName=United%20States&countryCode=us&regionCode=noa&rank=2#us 

Eichengreen, B. (2011). Why the dollar's reign is near an end. Wall Street Journal. Retrieved November 24, 2011 from  http://online.wsj.com/article/SB10001424052748703313304576132170181013248.html 

Fisk, R. (2009). The demise of the dollar. The Independent. Retrieved November 24, 2011 from  http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html 

Gow, D. (2011). Shock as €6 billion German bond sale ends in failure. The Guardian. Retrieved November 23, 2011 from  http://www.guardian.co.uk/business/2011/nov/23/eurozone-doomed-without-central-control-barroso
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Securities and International Financial Management

Words: 757 Length: 3 Pages Document Type: Term Paper Paper #: 8654526



There are also non-qualitative, or financial risks, associated with foreign currency loans. Namely, because foreign currencies can be effected by such uncontrollable as political, governmental and natural factors, a foreign currency can suddenly change in a manner that either significantly benefits or disadvantages the borrower. For example, often time the rate of a foreign currency is based on such things as internal, regional or international political conditions. If a particular country has a significant political upheaval, the instability associated with such an event can have a negative impact on a nation's economy, which of course effects the foreign currency exchange rate and, thus, the borrowers investment. When such an event happens to a nation with a dominant currency, this change can have devastating effects on a loan, as was the case following the September 11, 2001 terrorist attacks on the United States.

Another means to reduce risk is to use…… [Read More]

Bibliography

Almekinders, Geert J. (1995): Foreign Exchange Intervention: Theory and Evidence. New York: Edward Elgar Publishing, Inc.

Eijffinger, Sylvester. Foreign Exchange Intervention: Objectives and Effectiveness. New York: Edward Elgar Publishing, Inc.
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Financial Environment This Year the

Words: 1393 Length: 4 Pages Document Type: Research Proposal Paper #: 77231647

S. Treasuries (Gjelten, 2009).

What hasn't happened "officially," i.e. The establishment of a formal IMF SDR world currency system or some other form of a supranational currency, seems to be occurring in the market anyway, but just in a more informal fashion. For instance, already central banks throughout the world are favoring euros and the yen over the dollar as illustrated by the following numbers (Euro, yen to replace dollar as world reserve currency, 2009). During July through September 2009, banks put 63% their new cash into euros and the yen. As a result, the dollar's share of new cash in the central banks was down to 37 compared with approximately 67% a decade ago. Currently, according to the IMF, dollars account for about 62% of the currency reserve at central banks -- the lowest on record (Euro, yen to replace dollar as world reserve currency, 2009). Further, if China…… [Read More]

Bibliography

Amadeo, K. Dollar decline or dollar collapse?  http://useconomy.about.com/od/inflation/i/dollar_decline.htm 

Batson, a. (2009, March 24). China takes aim at dollar. The Wall Street Journal.  http://online.wsj.com/article/SB123780272456212885.html#mod=fox_australian 

Daniels, J.D., Radebaugh, L.H., & Sullivan, D.P. (2007) International business: Environments and operations. Upper Saddle River, NJ: Pearson/Prentice Hall. ISBN: 0131869426.

Davidson, a. (2009, March 23). Bejing shows buyer's remorse. Forbes.  http://www.forbes.com/2009/03/23/china-dollar-ditch-markets-economy-dollar.html
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Value of U S Dollar

Words: 3662 Length: 9 Pages Document Type: Term Paper Paper #: 74095660

Down? The Value of the Dollar

International Currency Exchanges

Current Trends and Initiatives

Impact of the Euro on Dollar Valuation

Analysis of Current Trends and Initiatives on Dollar Valuation in the Future

Up or Down? The Value of the Dollar: A Historical Analysis of the Valuation of the U.S. Dollar

According to Michael Artis, Elizabeth Hennessy, and Axel eber (2000), capital losses can be caused by differential changes in the value of assets and liabilities, primarily exchange rate changes; these changes affect the value of a central bank's foreign exchange reserves. To date, exchange rate changes have only been a major problem for national central banks with very large foreign exchange reserves (i.e., Portugal); however, it might also become a problem for the European Central Bank in the future, whose balance sheet on the asset side will be dominated by the approximately 40 billion euro in foreign exchange reserves it…… [Read More]

Works Cited

Arthurs, Harry. (1996). "Globalization and Its Discontents." Journal of Business

Administration and Policy Analysis, 24-26, 132.

Artis, Michael, Elizabeth Hennessy and Axel Weber (Eds.). The Euro: A Challenge and Opportunity for Financial Markets. London: Routledge, 2000.

Charrette, Susan and Juann Hung. (1997). "The Looming U.S. External Debt. How Serious is
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Risk Management Analysis Essential Tools

Words: 2853 Length: 10 Pages Document Type: Research Paper Paper #: 3095048

Most developed economies, however, allow the market to set exchange rates, only influencing currency values through indirect means such as the increased or reduced sale of bonds to foreign entities and individuals, or through other means of international wealth exchange. Essentially, all manipulations of exchange rates and actions based on predictions of exchange rates are focused on the forward exchange rate, or the predicted rate of exchange between two currencies at a future point in time.

The spot exchange rate, on the other hand, is the rate of exchange at the current moment in time. It is through a comparison of the spot rate and the forward rate of exchange -- inasmuch as it can be predicted with any accuracy -- that companies and businesses make decisions that affect either the exchange rate itself (in the case of some governments, notably China in the modern period), or more often make…… [Read More]

References

Christofferson, Peter F. Elements of Financial Risk Management. San Diego: Elsevier Sciences, 2003.

Comptroller of the Currency Administrator of National Banks. Interest Rate Risks. 1997. Accessed 19 March 2010.  http://www.occ.treas.gov/handbook/irr.pdf 

Cusatis, Patrick and Martin R. Thomas. Hedging Instruments and Risk Management. New York: McGraw Hill, 2005.

Dun & Bradstreet. Financial Risk Management. New Delhi: McGraw Hill, 2008.
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F X Markets Today's Foreign Exchange

Words: 1262 Length: 4 Pages Document Type: Essay Paper #: 15245945

The stability is evident in the statistics as well. Between 1880 and 1914, the golden age of the gold standard, inflation averaged 0.1%. Between 1946-2003, even with Bretton oods, inflation average 4.1% (Bardo, n.d.). Short-term price changes, however, could be highly unstable. This is a consequence of the fact that the gold standard ignores fundamental economic principles. Any system where the value of a good is established by artificial means is subject to such shocks. Another drawback to the gold standard is that it gives governments very little discretion over monetary policy. Another drawback is the cost of producing gold. The gold standard relies on having physical gold reserves. Thus, gold must be produced, and for that there is a cost (Ibid).

ith the decline of Bretton oods, the gold standard died. It was replaced by the modern foreign exchange system. At the core of this system are fiat currencies.…… [Read More]

Works Cited:

Bordo, Michael D. (no date). The Gold Standard. Concise Encyclopedia of Economics. Retrieved April 11, 2009 from  http://www.econlib.org/library/Enc/GoldStandard.html 

Cohen, Benjamin. (no date). Bretton Woods System. University of California at Santa Barbara Retrieved April 11, 2009 from  http://www.polsci.ucsb.edu/faculty/cohen/inpress/bretton.html
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A Comparison of Financial Difficulties in Russia

Words: 2841 Length: 12 Pages Document Type: Essay Paper #: 91225329

Antecedents and Outcome of Russia's Currency Crisis

Although the former Soviet Union has collapsed, losing much of its territorial possessions, Russia is still the largest country in the world and what happens to the Russian economy can have a profound effect on the rest of the world as witnessed during its currency crisis in 1998. This paper reviews the relevant literature to identify the antecedents of this most recent financial crisis compared to previous financial crisis in the country to identify similarities and differences. Finally, a summary of the research and important findings concerning these issues are presented in the conclusion.

Contemporary Episode

The most recent currency crisis that Russia experienced occurred beginning in August 1998 (Robison 246). In this regard, Chiodo and Owyang report that, "A currency crisis can be defined as a speculative attack on a country's currency that can result in a forced devaluation and possible debt…… [Read More]

Works Cited

Caglayan, Mustafa and Ulutas, Sevan. (2014, Spring). "Emerging Market Exposures and the Predictability of Hedge Fund Returns." Financial Management 43(1): 149-155. Print.

Cassidy, John. (2014, December 16). "Has Russia Learned the Lesson of Past Currency Crises?" The New Yorker. Web.

Chiodo, Abbigail J. and Owyang, Michael T. (2002, November/December). "A Case Study of a Currency Crisis: The Russian Default of 1998." Review - Federal Reserve Bank of St. Louis 84(6): 7-11. Print.

De Souza, Lucio. (2008, June 13). "A different country: Russia's economic resurgence." VOX. Web.
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Exchange Rate

Words: 1799 Length: 6 Pages Document Type: Term Paper Paper #: 34927209

Theoretically speaking, there is only one factor affecting the exchange rate of a country adopting a floating exchange rate regime: the supply and demand of the respective currency on the international market. In this sense, if demand exceeds supply, then the value of the currency will go up and the respective currency will appreciate. On the other hand, if supply exceeds demand, the currency will depreciate and the price of the currency will decrease.

Starting from this statement, however, we can discuss several different factors that make the demand and supply vary, affecting thus the exchange. First of all, we have the level of the interest rate in a country. If the interest rates are higher, then foreign investors will choose to enter the national capital markets, purchase local currency and invest in local bonds or T-bills, which bring high returns, due to high interest rates. This mechanism will lead…… [Read More]

Bibliography

1. Fixed and Floating Exchange Rates. (2003). On the Internet at  http://www.tutor2u.net/economics/content/topics/exchangerates/fixed_floating.htm 

2. S Johnson (July 2004). Dollar falls as data put focus on U.S. deficit. Financial Times

3. Fixed and Floating Exchange Rates. (2003). On the Internet at
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International Monetary System and Exchange Rate Policies

Words: 1065 Length: 4 Pages Document Type: Essay Paper #: 20667598

International Monetary System and Exchange ate Policies

A report/essay: chapter 17, multinational companies. select topic research write: Multinational vs. domestic financial management exchange rates international trade international monetary system exchange rate policies trading foreign exchange european monetary union interest

rate parity/purchasing power parity international capital structures.

The international monetary system and exchange rate policies

International Monetary systems

These are a set of rules and that regulate how international trade and payments are handled. It facilitates the exchange of capital, goods and services among countries. However, this system does not have a physical presence but, it consists of interlacing rules and procedures and is influenced by the market of foreign exchange. An example of an international monetary system is the International monetary fund. These interlacing rules and procedures are referred to as exchange rate Policies.

Exchange rate policies

These are rules that officials of public finance from different nations have developed…… [Read More]

References

Eichengreen. (2011). Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System

Goyal, M., Raman, Wang, and Ahmed; . ( 2011). Financial Deepening and International Monetary Stability.

Michael C. Ehrhardt, & Eugene F. Brigham. (2011). Corporate Finance (4th ed.): Cengage.

OECD. (2011). The Effects of Oil Price Hikes on Economic Activity and Inflation.
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Coca-Cola Company Coca-Cola Coke Is a U S -based

Words: 1884 Length: 6 Pages Document Type: Essay Paper #: 30004761

Coca-Cola Company ("Coca-Cola," "Coke") is a U.S.-based manufacturer and distributor of non-alcoholic beverage. The company recorded revenue of $46.5 billion in FY2011, and earned $8.5 billion in net income. According to the company's website, it sells products in over 200 countries, given the company near-global scope. This also ensures that Coca-Cola has substantial exposure to foreign currencies. This report will discuss a number of international financial aspects to Coca-Cola's business, including foreign currency risk and capital structure.

As Coca-Cola operates in just about every country in the world, there are a very few options for international expansion. The company's Mexican subsidiary is already exporting to Cuba, circumventing Helms-Burton. However, there remains one country where one cannot currently buy a Coca-Cola product, and that is the Democratic People's Republic of Korea (DPRK), or North Korea (Hebblethwaite, 2012). There is increasing wealth in that country, however, as the result of Chinese investment.…… [Read More]

Works Cited

Coca-Cola 2011 Annual Report. Retrieved December 11, 2012 from http://ir.thecoca-colacompany.com/phoenix.zhtml?c=94566&p=irol-financials

Hebblethwaite, C. (2012). Who what why: In which countries is Coca-Cola not sold? BBC News Magazine. Retrieved December 11, 2012 from  http://www.bbc.co.uk/news/magazine-19550067 

MSN Moneycentral. (2012). Coca-Cola Company. Retrieved December 11, 2012 from  http://investing.money.msn.com/investments/stock-income-statement/?symbol=KO 

Park, J. (2012). North Korea's economic dreams are, well…dreams. Reuters. Retrieved December 11, 2012 from  http://www.reuters.com/article/2012/11/04/us-korea-north-economy-idUSBRE8A30KM20121104
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United States Seems Concerned About

Words: 1328 Length: 4 Pages Document Type: Term Paper Paper #: 36005611

In fact, the UN's official policy attempts to limit the types of conditions that can be placed on debt forgiveness for third-world and developing nations. Despite this fact, it would be simplistic to state that G8 should not have the ability to make financial decisions independent of the UN and other international influence. As the countries that have provided the majority of financing for the world's poorest countries, it may be that the continued financial health of those countries depends upon them getting a financial benefit from such financial assistance. Therefore, the current world economy may actually depend on the ability of G8 to operate independently from the broader international community.

Q3: How does the Fisher effect impact the ability to forecast currency exchange rates? If the real interest rate is constant across borders, one would expect a constant currency exchange rate, but this does not occur. On the contrary,…… [Read More]