1000 results for “Foreign Exchange”.
There are price differences between the U.S. And UK sites for Toys 'r' Us. One example is the animated Talking Ben stuffed bear, which sells for $9.99 in the U.S. And £21.99 in the UK. The equivalent U.S. price in the UK should be £6.56, so there is a substantial price difference on this product.
Consumers do not, however, have the right to demand equal prices. Each nation represents its own market, so the economic conditions for each nation will be distinct. There are significant differences in the costs that underlie each product on retail shelves that are reflected in the retail price. Thus, the conditions for each market are different and the result will be different prices. Goods can flow across borders, but that does not imply that there is a global market -- each local market has its own conditions.
Furthermore, retail prices for consumer goods…
In addition, a series of joint ventures in which West German steel firms joined with East German firms and Krupp, Klockner, and Thyssen of Germany was pursuing other developmental initiatives in eastern Europe as well. Likewise, Arbed of Luxemburg was involved in steelmaking facilities in the former East Germany. According to Mangum et al., "The rising market for improved galvanizing for automobiles, appliances, canning, and other uses is producing a rash of joint ventures throughout the world. Some of these are internal to various countries and others involve international partners" (p. 74).
As a result, nearly 30% of the world's steel supply is now produced by plants belonging to companies that did not exist just 3 decades ago (Ahlberg, Pitkanen & Storsch 1999). As these authors point out, "Such upstarts have entered a global market that since 1980 has grown by less than 1% a year -- an average combining…
Ahlberg, J., A. Pitkanen and L.L. Schorsch. 1999. "Forging a New Era for Steel." The McKinsey
Altunisik, M.B. And O. Tur. 2004. Turkey: Challenges of Continuity and Change. New York:
he currency in South Africa is the rand. he rand is a free floating currency meaning that there are few controls on the value of the currency. While the rand is a reference currency in the southern Africa region, it is not considered to be a "hard" currency. he performance of the rand against the USD in the past year is as follows:
he chart shows the downward trajectory of the rand against the dollar. A year ago, the rand traded at 7.73 to the dollar, and today it is 9.12, a decline of 18%. his bodes well for a manufacturing operation in South Africa, where the already-low labor costs would be decreasing over time. It does not bode well for selling in South Africa, however, as the country's currency continues to get weaker, which means profits from South Africa will be worth less in dollar…
The Chinese yuan is not a floating currency. Its exchange rate is managed heavily by the Chinese government and as a result trades within a band set by the Chinese government, on a soft peg to the U.S. dollar. China's currency manipulation may perpetuate the band, but the country is under severe inflationary pressure. This puts the yuan on a steady, long-run appreciation, which can be seen in its chart for the past year:
The yuan one year ago traded at 6.29 to the dollar and today it trades at 6.23. This represents an appreciation of 0.9%. The country face high inflation for much of the year, but that inflation is reported to have dropped to 2.1% in March 2013. This inflation rate is not much different than that of the U.S., which would imply that the exchange rate should remain fairly stable. However, the overriding factor is China's currency band, which is likely to be maintained for the foreseeable future. As a result, the yuan will appreciate in the next year, but only by around the same amount as last year, so that the rate will be around 6.17 yuan to the dollar.
Overall, China represents the best option for Dorchester for selling it televisions. This is almost by default. South Africa is facing a weakening rand amid economic uncertainty. The country still has potential, but the timing is wrong given that the macroeconomic conditions are tough and the rand is depreciating faster than the inflation rate. The situation in Japan is worse. The economy might be better, but the yen is depreciating and there is deflation in the economy. This is bad news all round, and earning yen right now it not wise. This leaves China. China has its own problems -- growth is slowing and currency controls mean that there is a difference between earning yuan and being able to return those earnings to the United States. However, the slow appreciation of the yuan and some overtures to convertibility highlight the reality that China is a fairly safe country in which to invest, in terms of currency exchange rate expectations.
One of the more popular analytical methods that is used with MT4 that is used to coordinate share trades is based on the Fibonnaci series (each number in this series except one is the product of the preceding two numbers; i.e., 1, 2, 3, 5, 8, 13 & #8230;). This Fibonacci series is used in quantitative trading systems such as MT4 to help traders modify their investments in real-time as the market changes as described further below.
The Fibonacci series can be found throughout nature in the way a pinecone grows when viewed from above or the patterns in a seashell such as the nautilus. Humans have a natural affinity for the Fibonacci series which is also known as the "Golden atio" because it provides an aesthetic that is pleasing to humans (Gelet, 2009). Also pleasing to humans is the power of the Fibonacci series to help manage…
Artis, M. & Weber, A. (2000). The Euro: A challenge and opportunity for financial markets.
About Us. (2010). PIPPoint Forex Brokerage. Retrieved from http://pippoint.net/index.php?option=com_content&view=frontpage&Itemid=75.
Salcedo, Y. (2004, April). Forex FCM report. Futures, 33(5), 33-34.
Foreign Exchange isk Management
a) What are the causes of UK and Brazilian markets' revenues in Dollars being lower than expected?
One of the main causes of the revenue in dollars generated from the markets in Brazil and UK being lower than anticipated by the company is due to the depreciation of the countries' currencies against the U.S. dollar. Between January and September, the GBP constantly depreciated against the USD, an aspect that had not been anticipated by the financial team of the company.
b) How is the company doing in these markets?
The company is not operating well in these two markets as the revenues generated in the market have incessantly decreased in the nine months period. As the currency continue to depreciate against the dollar so has the expected revenue depreciated over the period.
c) Based on the given data, should it continue or cease the operations in…
Dohring, B. (2008). Hedging and invoicing strategies to reduce exchange rate exposure: a euro-area perspective. Economic Papers. Retrieved 21 October 2015 from: http://ec.europa.eu/economy_finance/publications/publication11475_en.pdf
Gonnelli, A. (1993). The Basics of Foreign Trade and Exchange. Federal Reserve Bank of New York, Public Information Department.
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.…
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
Foreign Monetary System
A monetary system is any structure initiated by the government and mandated to issue currency, acknowledged as the medium of exchange by its citizens and governments of other nations. The central bank manages the monetary system of a country; this same bank has the responsibility of printing money and controlling the economy. Since the colonial period, coins from the European colonies had circulated in all the colonies. The Spanish coins gained dominance due to the scarcity of coins, during this time; the main form of trade was barter trade. The trade-involved items such as rice, tobacco, or animal skins, which took the form of money paper and notes, had varying rates of discount in different colonies rendering them of very low value (onald & Wright, 2006).
The high population in the U.S. called for increased trade and commerce. This forced the United States government to look for…
Ronald, M. & Wright, R.E. (2006). Development of the U.S. Monetary Union. Journal of Financial History Review, 13(1), 19-41.
Anonymous, (2011). Challenges and risks of the International Monetary System. Journal of Economic Review, 22(5), 768.
Eichengreen, B.J. (2008). Globalizing capital: A history of the international monetary system.
Princeton: Princeton University Press.
Exchange Rate Crisis
Exchange rate crises are quite common phenomena in the economic world. From the 1994 Mexican crisis and the 1997 Asian crisis to the 1999 Argentine crisis, currency crises have occurred with a somewhat remarkable frequency. Also, known as currency crises or balance of payments (BOP) crisis, exchange rate crises occur when a country's monetary authority (central bank) has inadequate foreign exchange reserves to sustain its set exchange rates. This is usually caused by trade shocks, persistent budget deficits, foreign interest rate shocks, political uncertainty, banking system weaknesses, and moral hazard problems. An exchange rate crisis is often symbolised by factors such as hyper-inflation, banking crisis, devaluation, and economic recession, clearly indicating the dire consequences a currency crisis can have on the economy. More importantly, an exchange rate crisis can easily spread beyond the national boundary, underscoring the need for measures to prevent the crisis. This paper discusses…
country can interfere in the foreign exchange markets. In many cases, the motivation for doing so lies with propping up exporters, by lowering the value of the domestic currency. While this is the most common reason for currency manipulation, it is not the only one. In some cases, currency manipulation aids in the cause of making debt disappear, lowering the value of that debt in order that it might be paid back early. This paper will discuss some of the different ways that countries can affect their exchange rates.
A freely-traded currency should reflect the economic strength of a nation, in particular the expectations for future interest rates. Where expectations for future rates are relatively low, that means that the economy is expected to perform worse. This is the case for Japan. The country has adopted a policy recently of a low yen, in order to provide some spark to…
Kim, Y. & Ying, Y. (2007). An empirical assessment of currency devaluation in East Asian countries. Journal of International Money and Finance. Vol. 26 (2007) 265-283.
Palmer, B. (2012). If currency manipulation is so great for exports, why don't we do it? Slate. Retrieved November 24, 2014 from http://www.slate.com/articles/news_and_politics/explainer/2012/10/china_currency_manipulation_how_does_it_harm_the_u_s_and_what_can_we_do.html
Staiger, R. & Sykes, A. (2008). Currency manipulation and world trade. National Bureau of Economic Research. Retrieved November 24, 2014 from http://www.nber.org/papers/w14600
The Economist. (2014). A fistful of dollars, or perhaps not. The Economist. Retrieved November 24, 2014 from http://www.economist.com/blogs/americasview/2014/04/venezuelas-byzantine-exchange-rate-system
exchange rate risk can be hedged. The current cost of the room is £50 per day, which is: 50 * 1.50 = $75.00. For a consumer, the easiest way to hedge this risk would be to purchase pounds today, so that the cost of those pounds is locked in. The transaction is a money-loser because of the time value of money, except that in this situation the nominal amount of pounds is locked in, so the nominal amount of pounds needed will not change. Only the opportunity to make interest on that money changes. For £50 and one year, this amount is negligible, but for larger transactions the time value of money is significant and important, making this an undesirable option.
If the transaction was larger, it could be hedged on the futures market or with interest rate swaps. A forward contract could also be purchased. Futures have a downside…
Investopedia. (2011). How are futures used to hedge a position. Investopedia. Retrieved March 27, 2011 from http://www.investopedia.com/ask/answers/06/futureshedge.asp
"Foreign exchange forward." (2010). Montego Data. Retrieved March 27, 2011 from http://www.montegodata.co.uk/consult/fx/fxforward.htm
forward discount in predicting exchange rate modifications. The conclusion of the literature review is that the forward discount is a biased predictor and that are two possible explanations for this situation. One cause would be the presence of a time varying risk premium, and the other the failure of agents to make rational expectations (the inability to use all available information in an efficient manner).
The forward discount puzzle (as a predictor of exchange rate modifications) is a very discussed puzzle in the international finance literature, since its importance is quite high. As a result, numerous studies have concentrated on this issue, i.e. On the causes on the bias. Some authors (Fama, 1984), believe that this problem is traceable to the existence of a time-varying risk premium. Others connect it to learning effect (Lewis, 1989) or irrationality (Bilson, 1981) the "peso problem" (Krasker, 1980),
The "peso problem term" was introduced…
Beng, G.W. And W.K. Siong. (1993) Exchange Rate Expectations and Risk Premium in the Singapore/U.S. Dollar Exchange Rate: Evidence from Survey Data Applied Financial Economics, 3(4), pp. 365-73.
Bilson, John F.O., (1981) The Speculative Efficiency Hypothesis, Journal of Business, 54, pp. 435-452
Cavalgia, S.W., F.C. Verschoor and C.C.P. Wolff (1993a) Further Evidence on Exchange Rate Expectations Journal of International Money and Finance, 12 (1), pp. 78-98.
Cavalgia, S.W., F.C. Verschoor and C.C.P. Wolff (1993b) Asian Exchange Rate Expectations Journal of the Japanese and International Economics, 7(1), pp. 57-77.
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…
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
The first step is setting up an investment account is to understand the client. Everything flows from this. The client profile is developed through an extensive interview process, wherein the advisor seeks to gain an understanding of the client's personal circumstances, current and envisioned financial situation, risk tolerance and investment knowledge (Anthony, 2011). With this information, the financial advisor can then build a profile based on the portfolio objectives and risk constraints. For this portfolio, the focus will be on exchange-traded funds. The objective of this exercise is to build the optimal portfolio for the client, taking into account the client's personal circumstances and the variety of funds that are available to build the portfolio.
The client is a male, late 20s, with a long-term girlfriend. They have no current plans for children. They are American, living and working in Miami, and therefore are eligible to purchase…
Anthony, M. (2011). The evolving client profile. Financial Advisor Magazine. Retrieved November 30, 2013 from http://www.fa-mag.com/news/the-evolving-client-profile-7650.html
Baidu 2012 Annual Report. Retrieved November 30, 2013 from http://media.corporate-ir.net/media_files/IROL/18/188488/BaiduAR2012.pdf
BIO. (2013) What is biotechnology? Biotechnology Industry Organization. Retrieved November 30, 2013 from http://www.bio.org/node/517
CBO. (2013). Economic projections. Congressional Budget Office. Retrieved November 30, 2013 from http://www.cbo.gov/topics/economy/economic-projections
S. billion in 1998. eported as the dominant source of inward FDI in China is that of Hong Kong, followed by Japan, the U.S. And Taiwan.
Summary and Conclusion
This study set out to examine Foreign Direct Investment in China by the multinational enterprise. At present China is a primary source for foreign direct investment due to the favorable laws and regulations governing Foreign Direct Investment in China and the attempt to make location siting of the organization equitable and fair. China has been attempting to pull the company in line with their own expectations as have the multinational enterprises who desire to directly invest foreign funds into China.
Investment (2008) Multinational Corporations. Cush & Wakefield. etrieved from: http://www.cushwake.com/cwglobal/jsp/audienceDetail.jsp?audienceId=18&Country=900095&Language=EN&groupBy=audience
Kroll, CA and Bardhan, a. (2007) Globalization and the eal Estate Industry: Issues, Implications, Opportunities Haas School of Business, UC Berkeley, Paper Prepared for the Sloan Industry Studies Annual Conference.…
Investment (2008) Multinational Corporations. Cush & Wakefield. Retrieved from: http://www.cushwake.com/cwglobal/jsp/audienceDetail.jsp?audienceId=18&Country=900095&Language=EN&groupBy=audience
Kroll, CA and Bardhan, a. (2007) Globalization and the Real Estate Industry: Issues, Implications, Opportunities Haas School of Business, UC Berkeley, Paper Prepared for the Sloan Industry Studies Annual Conference. Cambridge, April 2007. Retrieved from: http://web.mit.edu/sis07/www/kroll.pdf
MULTINATIONAL CORPORATIONS (nd) Cush and Wakefield. Retrieved from:
S. directly. Evidently, the long-term objectives indirectly face the smooth running of the U.S. government. Priority should be given to those aspects that will pull the resources of the country to extreme levels. The U.S. As a super-power is privileged when tackling issues affecting other nations; it is mandated to help developing long-term solutions.
Long-term also implies that the impacts and effects need to be widespread in order to maintain balance and ensure the prosperity of all sectors is recognized. The above long-term objectives are issues that need time and resources in order to be able to resolve the issue that affects the stability of these countries among other issues. The Soviet Union, for example, is crying to have political relations with ussia. This means that the military forces will be deployed to this country. However, the negotiation process is hefty and requires time and adequate resources in order to…
Bruce, J. & Bennett, M. (2008). "Foreign Denial and Deception: Analytical Imperatives,"
Analyzing Intelligence: Origins, Obstacles, and Innovations. Washington, DC:
Burch, J. (2008). The Domestic Intelligence Gap: Progress Since 9/11? Homeland Security
Foreign Corrupt Practices Act: What it Is and What it Does
The Foreign Corrupt Practices Act of 1977 as amended was passed in response to the discovery of numerous corporate misdeeds, including accounting irregularities, by Northrop, Lockheed, Gulf Oil by the Watergate special prosecutor and a subsequent investigation by the Securities and Exchange Commission that found these practices were prevalent in American business, including nearly a quarter of the Fortune 500 companies. This paper provides a review of the relevant literature to determine the rationale in support of the passage of the Foreign Corrupt Practices Act and what it prohibits. An analysis concerning the impact that the Act has had on American business at the national and international level is followed by a discussion concerning penalties for violations of the Act. An assessment of the impact on U.S. commerce is followed by a discussion concerning enforcement responsibility for the Act…
Boedecker, K.A. (2011, July 1). Rising risks and uncertainties for U.S. firms' gifts, travel and entertainment expenses for marketing in foreign countries: The implications of increased
Foreign Corrupt Practices Act enforcement. Journal of Legal, Ethical and Regulatory
Issues, 14(2), 73-77.
Culp, C.L. & Niskanen, W.A. (2003). Corporate aftershock: The public policy lessons from the collapse of Enron and other major corporations. Hoboken, NJ: Wiley.
Foreign Corrupt Practices Act
Foreign Corrupt Practices Act: How this affects U.S. business interests overseas
Simply because United States corporations do business in nations with different ethical standards does not mean that U.S. companies get a free legal 'pass' regarding how they comport themselves abroad. "The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. § 78dd-1, et seq. ('FCPA'), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business" (FCPA, 2012, DOJ). Even if bribery is an accepted aspect of doing business in the developing world, a U.S. business will still run afoul of the FCPA if it complies with this type of 'cultural tradition.' The "payment of money or anything of value to any person, while knowing that all or a portion of such money or…
Adkins, Robb & Segal, Dina. (2012). Is FCPA Enforcement in Russia the Next China? Law.com.
Barstow, David. (2012). Vast Mexico bribery case hushed up by Wal-Mart after top-level struggle. The New York Times. Retrieved:
Foreign business environment: Columbia
A. What events (political, economic, and technological) are the most important in recent years that might have impacted the business culture in Colombia?
Individuals who perceive Colombia as still being paralyzed by crime networks and drug cartels are skeptical and bewildered by the notion of a confederation of politicians, business leaders, and academicians visiting the nation. However, in reality, the situation in Colombia is far different from what it was a mere ten years ago.
Colombia’s infamous cruel and powerful drug cartels emerged during the latter part of the seventies era and developed in the subsequent two decades. Specifically, the Cali Cartel and Pablo Escobar’s Medellín Cartel were politically, socially and economically influential in the nation in this period. During the last two decades of the twentieth century, the world regarded the nation as being well on its way to becoming a failure as a state.…
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…
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.
Governments neutralize the monetary impacts of their foreign exchange activities. This sterilization seeks to prevent foreign exchange transactions from posing as obstacles to the domestic monetary policy objectives. The underlying disturbance is likely to cause conflict between governments. When the underlying disturbance to exchange rate originates from the domestic government, it is likely to pursue inflation objectives through non-sterilized foreign exchange interventions (Auerbach & Kotlikoff, 2009).
While other governments have boundaries on investments relating to international financial markets in different currencies, some governments factor objectives of nominal exchange rates into their financial policy decisions. For instance, the federal government occasionally alters the rate of federal funds while it undertakes compatible foreign exchange activities. Erecting the required monetary policy changes across the sale or purchase of foreign currency has a bigger impact on the foreign exchange rate. This is contrary to initiating this move through open market activities in state securities.…
Auerbach, a.J., & Kotlikoff, L.J. (2009). Macroeconomics: An integrated approach. Cambridge, Mass. [u.a.: MIT Press.
Madura, J. (2011). International Financial Management. Florence, KY: Cengage Learning, Inc.
Yotopoulos, Pan a. (2010). Exchange Rate Parity for Trade and Development: Theory, Tests, and Case Studies. Cambridge Univ Pr.
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…
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
Exchange Rate Volatility on Trade Flows
Exchange Rate Volatility
Impact on International Trade Flows
Exchange Rate Volatility
Impact on International Trade Flows
Trade Flow Responsiveness
The dissolution of the Bretton-oods system in 1973 introduced a new era for international markets. No longer would the exchange rates be pegged and fluctuating exchange rates changed the game for international trade and investment. The newly introduced increase in volatility in the foreign exchange markets also increases the risk of uncertainty for all international transactions. The floating rates produce new complexities that have implications for any individual or organization who buys sells, makes, or trades goods or currencies. These implications directly affect nation's balance of trade; however they also literally indirectly affect every individual's lives in one way or another.
The exchange rate volatility has had mixed theories produced by academia in terms of its effects on trade flows.…
BAHMANI-OSKOOEE, M., & KARA, O. (2003). Relative Responsiveness of Trade Flows to a Change in Prices and Exchange Rate. International Review of Applied Economics, 293-308.
Bahmani-Oskooee, M., & Wang, Y. (2008). IMPACT OF EXCHANGE RATE UNCERTAINTY ON COMMODITY TRADE BETWEEN THE U.S. AND AUSTRALIA. Australian Economic Papers, 235-258.
Cheong, Chongcheul, (2004) "Does the risk of exchange rate fluctuation really affect international trade flows between countries?." Economics Bulletin, Vol. 6, No. 4 pp. 1?8
Hegerty, M.B.-O. (2007). Exchange rate volatility and trade. Journal of Economic Studies, 34 No. 3, 211-255
4 trillion to about $5 trillion dollars at the end of 2008 to support a rise in U.S. net external debt from $3.3 trillion to $7.4 trillion. (Ibid. 6) Continued financing of the U.S. trade deficits by the rest of the world is also not without its long-term problems: the U.S. would accumulate so much debt over time that the ultimate cost of adjustment would become too high for the U.S. economy. Hence, all indicators regarding the sustainability of the U.S. trade deficit are blinking red, despite the brave face that the Bush administration puts on the issue.
Is China the Source of the Deficit Problem?
The U.S. administration believes that the alleged under-valuation of the Chinese Yuan is the source of its deficit problems since there is a huge and growing trade imbalance between the U.S. exports and imports to China. The U.S. Senate recently passed a bill, threatening…
Balance of Trade." (2005). [Online]. Wikipedia the Free Encyclopedia. Available from: http://en.wikipedia.org/wiki/Trade_deficit [19 April 2005]
Beck, B. (12 April 2005). "It's more than the deficit, stupid!" [Online]. Political gateway. Available from: http://www.politicalgateway.com/main/columns/read.html?col=334[19 April 2005]
Cock-a-doodle-doo" (3 Feb 2005). [Online]. The Economist. Available from: http://internationalecon.com/MyCourses/News%20Stories/Economist_com%20%20China's%20exchange%20rate.htm[19 April 2005]
Mann, C.L. (1999). Is the U.S. Trade Deficit Sustainable? Washington D.C: Institute for International Economics
Managing exchange rate risk can be a daunting task for many international firms attempting to expand overseas, acquire new companies, or simply manage its cash flows. Globalization has created a dynamic environment in which competition can arise to disrupt entire industries. Aspects such as technology, pharmaceuticals, banking, and automobiles have all experienced rapid change as a result of globalization and the competitive forces that underline it. As a result, companies, particularly smaller firms, have a higher propensity to experience volatile earnings overtime. Aspects that impact one sector of the globe can have a residual impact on other areas of the individual firm or industry. Managing exchange rates is therefore a viable option for firms to reduce volatility in earnings while subsequently managing its cash flows from operations. Below, is a 5 step program which could be implemented by a firm attempting to manage its exchange rate risk after an…
1. Jorion, Philippe (2009). Financial Risk Manager Handbook (5 ed.). John Wiley and Sons. p. 287. ISBN 978-0-470-47961-2.
2. Bartram, Sohnke M. (2006). "The Use of Options in Corporate Risk Management." Managerial Finance 32 (2): 160 -- 181
popularity of foreign restaurant: consumer attitude and behavior toward foreign cuisines in Bangkok
Thailand as a tourist destination
Thailand has become a tourist destination hotspot for its scenic beauty, the humble nature of their people, and the relative value of foreign currencies relative to the baht. According to EIU ViewsWire (2003), "Growth in the tourism industry in recent years was the result of the depreciation of the baht against non-Asian currencies (which improved competitiveness relative to destinations outside the region), aggressive marketing campaigns and an increase in the number of airlines offering flights to Thailand." (EIU ViewsWire, 2003)
Additionally, according to EIU ViewsWire (2003), "Tourist arrivals rose by 5.8% to just over 10m in 2001, despote the global economic downturn and the September 11 terrorist attacks in the U.S., bringing in Bt 295bn (U.S. $6.6 bn) in revenue. Thailand benefited from its reputation as a safe and stable society and…
"A century of certification," 2003, Health and Hygiene, vol. 24, no. 2, pp. 12-12-13.
Anne-Mette Hjalager & Magda, A.C. 2000, "Food for tourists -- determinants of an image," The International Journal of Tourism Research, vol. 2, no. 4, pp. 281-281.
Asia's Biggest Sourcing Event for Foods and Beverages Ever Kicks Off This Week 2011,, PR Newswire Association LLC, United States, New York.
Chen, M. 2009, "Attitude toward organic foods among Taiwanese as related to health consciousness, environmental attitudes, and the mediating effects of a healthy lifestyle," British Food Journal, vol. 111, no. 2, pp. 165-165-178.
MNE Foreign Pricing, Profits
One of the most challenging areas of a multinational firm's business is setting target pricing and revenue for foreign markets, given the complications arising from currency denominations and exchange rates.
That is because exchange rates demonstrate the linkage between one nation and its partners in the global marketplace. They affect the relative price of goods being traded (exports and imports), the valuation of assets, and of course the final economic yield on those very assets.
In the period of fixed or constant exchange rates these prices, values, and yields were predictable over time. However, since 1973 we have been living in a world of flexible rates where foreign exchange markets determine these rates based on trade flows, interest rate differentials, differing rates of inflation, and speculation about future events.
Exchange rates can be expressed as the foreign price of a domestic currency (i.e., the Euro price…
USD/CNY Currency Exchange elationship
The amount of money passing through a foreign exchange market was pegged at $4.0 trillion per day in April 2010 (Bank for International Settlements, 2010). Among the many currencies traded on the open market, the U.S. dollar (USD) continued to lead the pack by a wide margin; a full 84.9% of all trades involved the USD. By comparison, the Chinese currency (CNY) increased its share of the global FX market from 0.1 to 0.9% between April of 20004 and 2010. To better understand how trade with China impacts the exchange rate this essay will examine monetary policy for both countries.
USD/CNY Foreign Exchange Market
The sum of the current (CA) and capital (CAP) accounts will theoretically be zero if the exchange rate between two currencies is flexible (MacDonald, 2007, p. 7). Since M = + D, where M. is the base money supply, is the…
Bank for International Settlements. (2010). Triennial Central Bank Survey. Report on Global Foreign Exchange Market Activity in 2010. Retrieved 22 May 2014 from http://www.bis.org/publ/rpfxf10t.pdf .
ECR Research. (2014). China's exchange rate policy. Retrieved 22 May 2014 from http://www.ecrresearch.com/chinas-exchange-rate-policy .
ETF Database. (2014). CYB -- Dreyfus Chinese Yuan Fund. Retrieved 22 May 2014 from http://etfdb.com/etf/CYB/ .
MacDonald, R. (2007). Exchange Rate Economies: Theories and Evidence. New York: Routledge.
In a sense, a foreign acquisition target is assessed in much the same way that any other target would be, but the specifics of the evaluation may differ. All acquisitions must be priced, and this price needs to take into account all of the different risks. The difference with foreign acquisitions is that the risks are going to have different weights. For example, there is little incremental political risk involved in a domestic acquisition, but there is with an international one. Sometimes, there is a lot of incremental political risk. Foreign acquisitions will typically involve foreign exchange rate risk, to a higher degree than the firm currently faces. Post (2006) notes that there are often risk premiums associated with foreign acquisitions, and these risk premiums can increase the price and reduce the return
So because the risk profile of international acquisitions is different, the hurdle rate for such…
Investopedia. (2014). Real option. Investopedia. Retrieved October 15, 2014 from http://www.investopedia.com/terms/r/realoption.asp
Post, D. (2006). Examining merger and acquisition foreign direct investment in the United States: Do high purchase prices drive low returns? Stanford University. Retrieved October 15, 2014 from https://economics.stanford.edu/files/Theses/Theses_2006/Post.pdf
Transaction exposure risk may be defined as "cash flow risk" and is associated with the impact of FX rate moves on exposure due to transactional accounts, regarding exports, import or dividend repatriation: and FX "rate change in the currency of denomination of any such contract will result in a direct transaction exchange rate risk" (Papaioannou, 2006, p. 4), thus impacting the multinational corporation in terms of affecting the inflow and outflow of cash over a given period.
Translation risk may be defined as the FX rate risk associated with the balance sheet of a company's holdings. The notion is that exchange rates affect the value of a subsidiary in a foreign country and in instances where the subsidiary is consolidated to the parent balance sheet, the risk becomes translational. The way to measure this risk for a company is by assessing the net asset exposure and measuring it against…
Bodnar, G. (2015). Techniques for managing exchange rate exposure. Wharton/UPenn.
Retrieved from http://finance.wharton.upenn.edu/~bodnarg/courses/readings/hedging.pdf
Dohring, B. (2008). Hedging and invoicing strategies to reduce exchange rate exposure:
a euro-area perspective. Economic Papers 299, European Commission.
It is likely that the retrieved results will indicate a cost of not hedging significantly larger than that of hedging.
Dozier Industries has a long standing tradition and a favourable reputation. The company worked mainly with the military, but also came to engage in civilian contracts. Having operated mostly nationwide, the UK-based company is now presented with the opportunity of conducting international activities. This however implies both benefits, as well as limitations.
A relevant limitation is given by the risks implied by the exchange rates, namely by their future and unknown fluctuations. This is the main reason why organizations choose to sign hedging contracts. The most common hedging alternatives are the forward, futures and option contracts. The option contracts are the most flexible ones, but they do present an additional risk for the seller, ergo employing the premium.
Despite the advances in the financial market, there still are…
Giddy, I.H., the Corporate Hedging Process, New York University, Stern School of Business, http://pages.stern.nyu.edu/~igiddy/corphdg.html . Ast accessed on January 29, 2009
Meera, a.K.M., 2002, Hedging Foreign Exchange Risk with Forwards, Futures, Options and the Gold Dinar: A Comparison Note, Department of Business Administration, Retrieved at http://lariba.com/knowledge-center/articles/pdf/Malaysia%20-%20GOLD%20-%20Hedging%20With%20Dinar.pdfon January 29, 2009
2009, Hedge, Investopedia, http://www.investopedia.com/terms/h/hedge.asplast accessed on January 28, 2009
1986, Dozier Industries, Stanford University
The turnaround could only start with the restructuring of the management team. Among the different communication problems identified, one with most impact on the overall situation at the bank was the lack of communication between the managerial team and the board and, quite often, between the managerial team and the structures in its subordination (such as the auditing and risk management departments).
The new leadership had no problem to work the restructuring of the management team by simply headhunting capable people, with experience in troubleshooting, from other financial institutions. Such a complete change of the management team needed to be performed carefully, because entire personnel changes could very well have an impact on the morale of the entire bank. The challenge of the new management also became to glue together the new team.
Along with the organizational restructuring also came a need to tackle the bureaucracy that had hampered so…
1. Organizational Restructuring: Management & Analysis. May 2009. On the Internet at http://www.articlesbase.com/organizational-articles/organizational-restructuring-management-analysis-945103.html . Last retrieved on May 6, 2010
2. Stevenson, William; Bartunek, Jean; Borgatti Stephen. Front and Backstage Processes of an Organizational Restructuring Effort. The Journal of Applied Behavorial Science. September 2003
3. Thomson, Diane; Jain, Ameeta. Accountability and Board Functionality: National Australia Bank's experience. September 2006. On the Internet at http://www.melbournecentre.com.au/Finsia_MCFS/Monday/Stream%202/DianneThomson_paper.pdf. Last retrieved on May 6, 2010
4. Acquaah-Gaisie, G. Enhancing Corporate Accountability in Australia. Australian Journal of Corporate Law, Vol. 11, pp 139-148. 2000
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.…
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
fixed and floating exchange rates mechanisms are the exact opposites of one another, the advantages of one are generally the disadvantages of the other. Anyhow, in order to be able to evaluate for each case in part its positive and negative aspects, we should start with defining each, as most of the advantages and disadvantages derive there from.
The fixed exchange rate mechanism refers to a mechanism where "the government (central bank) sets and maintains the official exchange rate)
." The key word in this mechanism is pegging, which means that the currency has a price set against a major currency of the world and that the central bank ensures that this rate is kept throughout the entire period the currency is pegged.
The main advantage in this case refers to stability. Indeed, a fixed exchange rate mechanism helps eliminate or speculative activity on the respective currency. With no more…
1. Heakal, Reem. Fixed and Floating Exchange Rates. February 2003. On the Internet at http://www.investopedia.com/articles/03/020603.asp
2. Fixed and Floating Exchange Rates. (2003). On the Internet at http://www.tutor2u.net/economics/content/topics/exchangerates/fixed_floating.htm
Heakal, Reem. Fixed and Floating Exchange Rates. February 2003. On the Internet at
U.S. Department of Commerce
South Africa’s population of 50 million enjoys the most sophisticated, mature and productive economy on the African continent today (U.S. commercial service, 2014). The country’s GDP represents approximately 33 percent of the sub-Saharan total and the South African economy has experienced sustained growth of 3.2 percent over the past 5 years (US commercial service, 2014). According to the U.S. Department of Commerce, “The U.S. Commercial Service in South Africa is co-located with the U.S. Consulate General [with the] mission to create jobs in the United States by advancing commercial opportunities in South Africa and strategically assisting firms export U.S. products and services” (U.S. commercial service, 2014, para. 2).
World Trade Organization
The World Trade Organization’s (WTO’s) most recent policy review (2008) shows that during the period from 2003 through 2008, the percentage of trade in goods and services to South Africa’s GDP rose from 53.8% to…
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…
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
Globalization and Education
Globalization involves a number of different elements, including economic integration, freedom of capital movements, and the increasing "transfer of knowledge, cultural stability" and an increase in cultural interactions (Al-odhan, 2006). The process of globalization has been fostered by industrial-age improvements in transportation, communication and through political and economic liberalization. One of the antecedents of the era of globalization was the creation of the European Common Market. When this was extended to not only allow for goods and capital to move more easily across borders but labor as well, this ushered in a new era of mass migration. Today, many of the world's leading cities have incredibly diverse populations, as people from all over the world are drawn by the economic promise of major urban hubs. One of the areas where this trend can be seen is with education. For decades, education has been trumpeted as a pathway…
Al-Rodhan, N. (2006). Definitions of globalization. Geneva Centre for Security Policy. Retrieved November 17, 2015 from http://s3.amazonaws.com/academia.edu.documents/30929642/Definitions_of_Globalization_-_A_Comprehensive_Overview_and_a_Proposed_Definition.pdf?AWSAccessKeyId=AKIAJ56TQJRTWSMTNPEA&Expires=1447724149&Signature=KHFcmax%2BQD8oIUr9BWJZz%2BFEzb4%3D&response-content-disposition=inline%3B%20filename%3DDefinitions_of_Globalization_A_Comprehen.pdf
Grootaert, C. (1994). Education, poverty and structural change in Africa: Lessons from Cote d'Ivoire. International Journal of Educational Development. Vol. 14 (2) 131-142.
Kwiek, M. (2001). Globalization and higher education. Higher Education in Europe. Vol. 16 (1) 27-38.
Vaira, M. (2004). Globalization and higher education organizational change: A framework for analysis. Higher Education. Vol. 48 (2004) 483-510.
Foreign Policy of China (Beijing consensus)
Structure of Chinese Foreign Policy
The "Chinese Model" of Investment
The "Beijing Consensus" as a Competing Framework
The U.S.-China (Beijing consensus) Trade Agreement and Beijing Consensus
Trading with the Enemy Act
Export Control Act.
Mutual Defense Assistance Control Act
The 1974 Trade Act.
The Operational Consequences of Chinese Foreign Policy
The World Views and China (Beijing consensus)
The Managerial Practices
Self Sufficiency of China (Beijing consensus)
China and western world: A comparison
The China (Beijing consensus)'s Policy of Trading Specialized Goods
The versions of China (Beijing consensus)'s trade development
The China (Beijing consensus) Theory of Power Transition
Foreign Policy of China (Beijing consensus)
ACD arms control and disarmament
ACDA Arms Control and Disarmament Agency
ADB Asian Development Bank
ADF Asian Development Fund
APEC Asia-Pacific Economic Cooperation
AF ASEAN [Association of Southeast…
Barnett, A.D. (1977). China (Beijing consensus) and the Major Powers in East Asia. Washington, DC: The Brookings Institution. Retrieved September 10, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=34158088
Boorman, H.L., Eckstein, A., Mosely, P.E., & Schwartz, B. (1957). Moscow-Peking Axis: Strengths and Strains (1st ed.). New York: Harper & Brothers Publishers. Retrieved September 10, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=53424557
Sardesai, D.R. (1974). Chapter 6 India: A Balancer Power?. In Southeast Asia under the New Balance of Power, Chawla, S., Gurtov, M., & Marsot, A. (Eds.) (pp. 94-104). New York: Praeger. Retrieved September 10, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=14691923
Chawla, S., Gurtov, M., & Marsot, A. (Eds.). (1974). Southeast Asia under the New Balance of Power. New York: Praeger. Retrieved September 10, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=14691822
Discussion. Translation risk is one of the most difficult risks to address. The company can adopt specific strategies to reduce its exposure to specific risks, for example partnering with a local firm to reduce governmental risk. Dealing with broad-based country exposure and by extension translational risk, however, is more complicated. One of the best ways to approach the issue is through diversification. For larger countries, however, it may be difficult to deal with exposure.
The best approach to unhedgeable translational risk is to ensure that adverse currency movements are not going to do significant damage to the company. The company's balance sheet should be far from loan covenants (Amin, 2006). The company should be able to explain to shareholders if translation impacts more than a few cents per share. If this is not the case, then the company needs to find ways to hedge that translational risk by earning extra…
Watkins, T. (no date). Accounting or translation risk exposure. San Jose State University. Retrieved April 22, 2010 from http://www.sjsu.edu/faculty/watkins/accountrisk.htm
Amin, M. (2006). Should companies hedge against translation risk? Price Waterhouse Coopers. Retrieved April 22, 2010 from http://pwc.blogs.com/finance_and_treasury/files/Translation_risk_hedging_paper_260506.pdf
Pugel, T. (2009). International Economics. McGraw-Hill.Higher Education
a) As the AUD is gaining value (buying power) and the EUR is losing value over time, June is in an excellent position with her European suppliers granting her a 60-day credit period and her Australian customers paying on 30-day credit terms: the AUD she receives in payment within 30 days will be worth more in EUR 30 days later, when her own payments are due, meaning she will save money.
b) One hedging strategy June could employ to shield against movements in either direction by either currency would simply be to shorten credit terms with suppliers and customers, paying as soon as bills were in and collecting as fast as possible, in a currency-swap type scenario. This has other business implications that would not necessarily be beneficial, however. June could also use forward contracts, locking in agreed-upon exchange rates for future purchases and sales over longer periods…
Exchange ate Movements for the U.S. And Australian Dollar and Hedging
On the 9th June 2013 the initial $90,000 investment was worth $94,724.9. Knowing that the exchange rate on that date was AU $1.0525 to the U.S. dollar, meaning that U.S. $1 would purchase $1.0525, it is possible to determine that the total investment had purchased AU $99,697.96 (Oanda, 2013).
On the 7th June the exchange rate has changed to $1.1019, with the given fund value of AU $99,697.96, the change leaves a fund that is worth U.S. $90,478.23 (Oanda, 2013).
It is possible to look at the exchange rate movements over a period of time taking data from Oanda (2013). The tables below present that value for the last week, the last week of 2013 and the last week of 2011.
Table 1; Exchange rates for 1st - 7th July 2013
Bychuk, Oleg V; Haughey, Brian, (2011), Hedging Market Exposures: Identifying and Managing Market Risks, Wiley Finance
Giddy, (2002), Homepage, [online] retrieved from http://giddy.org/giddyonline/index.htm
Oanda.com, (2013), OANDA, the Currency Site, [online], retrieved from http://www.oanda.com/convert/fxhistory
In November of 2012, the International Monetary Fund (IMF) announced that the Australian and Canadian dollars would be added to its list of reserve currencies. This status is the highest for any currency, and implies that the currency is a very reliable store of value. A reserve currency is backed by a nation's assets, like any fiat currency, but with reserve currencies there are also the conditions of good governance, economic diversification, free float and other such attributes that define the world's strongest and most widely-traded currencies. These are also currencies that are traded widely in their regions -- the Australian dollar is a reference currency in the South Pacific -- and they are held by foreign central banks as part of those banks' currency portfolios. The relative strength of the AUD and CAD has been cited as the reason for those currencies' popularity with central bankers, and…
CIA World Factbook (2015). Australia. Central Intelligence Agency. Retrieved November 29, 2015 from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
Inman, P. (2015). Slowing growth in China raises red flag for global economy. The Guardian. Retrieved November 29, 2015 from http://www.theguardian.com/world/2015/oct/19/slowing-growth-china-commodities-global-economy
Investopedia (2015) Fiat money. Investopedia. Retrieved November 29, 2015 from http://www.investopedia.com/terms/f/fiatmoney.asp
Marsh, D. (2012). Aussie, Canada dollars termed reserve currencies. MarketWatch. Retrieved November 29, 2015 from http://www.marketwatch.com/story/aussie-canada-dollars-termed-reserve-currencies-2012-11-19
Exchange Rate Risk
There are a variety of methods that can be used to reduce foreign exchange risk. Companies have been known to use hedging and reciprocal trading deals in order to offset the risk of foreign currency rates. Hedging entails signing a forward contract with a bank that entitles the business to buy foreign currency at an exchange rate agreed upon on the day when the contract is signed. In this way, the risk of possible loss from future exchange rate fluctuations is reduced. This also means that there is no possibility to profit from favorable exchange rate changes.
When seeking to reduce possible future risks, it is vitally important that a company has an established foreign exchange policy, according to which it plans against risk. All the involved parties, including banks and partners, need to be included in strategies to hedge risks.
Open Cover Marine Cargo Policy
Griffin, Jim. "The Essential Element in Exchange Rate Risk Management." Global Markets Group, Union Bank, 2004. www.worldtrademag.com/CDA/ArticleInformation / features/BNP__Features__Item/0,3483,64179,00.html
Hudock, Brian. "How to Maximize Warehouse Space When Expansion Isn't an Option." Tompkins Associates, Inc., 2003. www.tompkinsinc.com/publications / competitive_edge/articles/05-04-MaximizeSpace.asp
Maugham, Stewart. "Foreign exchange hedging." 1 August, 2000. www.accaglobal.com/publications/studentaccountant/36968
(Dow Jones and Company, 2009). The DJIA can be used in three principal ways: as a yardstick, as a barometer, or as an investment.
When the DJIA is used as a yardstick, the goal is to measure performance from one period of time to another:
The most common use of an index by investors is to evaluate the performance of their own portfolios on a monthly or quarterly basis. This is the "benchmark" function of an index, and it constitutes the bogey that many investors try to beat with individual stock picks or with mutual funds. There is no official benchmark for the stock market. Each investor chooses his or her own. The only logical requirement is that the benchmark chosen should represent the part of the stock market that is targeted by the investor's portfolio. For example, if the investor dabbles in large stocks from a variety of industries,…
H.J. Heinz Co. 2009. Shareholder Information. H.J. Heinz Company. Available from:
http://heinz.com/our-company/investor-relations/shareholder-information.aspx [August 28, 2009].
Dow Jones and Company. 2009. About the Averages: Overview. New York: Dow Jones and Company. Available from: http://www.djaverages.com/?view=about&page=overview [August 28, 2009].
E*Trade Financial Corp. 2009. Pricing. E*Trade Financial Corp. Available from:
When this happens, the standard of living and income levels will remain stagnant. (Bhargava, 2006, pp. 341 -- 362) (Cazurra, 2008, pp. 12 -- 27)
Moreover, corruption will increase the costs of doing business inside a particular area. This is troubling, as it will lead to less employers relocating to the region. Instead, they will seek out locations where there are lower amounts of corruption. This is a part of an effort to keep their costs as low as possible so that they can increase their overall returns and remain competitive in the global marketplace. For the region, this will result in less high paying jobs (which helps contribute to an increase in the unemployment rate). (Bhargava, 2006, pp. 341 -- 362) (Cazurra, 2008, pp. 12 -- 27) (Heineman, 2006, pp. 75 -- 86)
How can MNCs deal effectively with these problems?
The ways that MNCs are able to deal…
Berg, N. (2004). How Multi-National Corporations Deal with their Social Political Stakeholders. Asian Business and Management, 3 (3), 299 -- 313.
Bhargava, V. (2006). Global Issues. Washington DC: World Bank.
Cazurra, a. (2008). The Types of Corruption and FDI in Transition Economies. Journal of International
Management, 14 (1), 12-27
Yet, what is important to accomplish at this stage is the presentation of the direct effects of the foreign direct investments. If these impacts materialize in growths of the Panamanian economy, it will be safe to conclude that the country reveals an efficient bi-direction foreign direct investment system. In this order of ideas, the following lines reveal some of the most notable impacts of FDIs onto Panama's socio-economic status (they are written in bulleted form to increase readability and clarity):
The first and foremost important impact was given by the massive investments made in the enlargement of the Panama Canal; the effects of such an endeavor were tremendous. On the one hand, the enlarged canal offered greater opportunities for traffic, which in turn materialized in greater revenues from offering services in the canal. Then, this enlargement translated into an increased demand for workforce, which in turn created new jobs, reduced…
Woolford, P., Panama Has the Highest Foreign Direct Investment to GDP Ratio in Latin America, Panama Real Estate Investment, 2008, http://panamarealestateinvestment.org/2008/08/04/panama-has-the-highest-foreign-direct-investment-in-latin-america / last accessed on October 28, 2009
Panama, SICE -- Foreign Trade Information System, http://www.sice.oas.org/ctyindex/USA/ftbpan1999_e.pdf last accessed on October 28, 2009
Panama: Country and Foreign Investment Regime, Low Tax, 2009, http://www.lowtax.net/lowtax/html/jpacfir.html#forinv last accessed on October 28, 2009
Panama FDI Grows 19% in First-Half 2007, Reuters, 2007, http://www.reuters.com/article/economicNews/idUSN1928223720070919 last accessed on October 28, 2009
Dell, HP, Microsoft, Exxon Mobil and Wal-Mart has emerged as the strong candidates in the international market, which has been possible only because the companies have avoided and curtailed the possible security risk either through strategy in which the focus has been to aver the security concerns either through provisions for the social welfare of the people in the region, or through relocation (Erik, 2004). The United States has therefore maintained its lead in the war of trade in the field of globalization with the weapons of research, technological advancement and services fully active and supportive.
It is proposed that the country should devise a strong security monitoring system which should be compatible to the economic and trade system and linkages of other countries, the government of the United States should not design its economic policies as per the security concerns prevalent in the certain regions, rather areas of…
Dell Champlin, Paulette Olson. The Impact of Globalization on U.S. Labor Markets: Redefining the Debate. Journal of Economic Issues. Volume: 33. Issue: 2. 2001. Association for Evolutionary Economics.
Kunihiko Imai. The Impact of Globalization on Civil Liberties: Asian vs. Non-Asian States. International Journal on World Peace. Volume: 19. Issue: 1. 2002. Professors World Peace Academy.
Erik S. Reinert. Globalization, Economic Development and Inequality: An Alternative Perspective. Edward Elgar Publishing. 2004. pp. 23-67.
Jonathan Michie, John Grieve Smith. Globalization, Growth, and Governance: Creating an Innovative Economy. Oxford University Press. 2001. pp. 103-129.
Indian Legal Environment Foreign Companies Introduction Today, International Businesses buy sell, India. It essential a foreign company planning enter India, understand culture, traditions peoples' mindset.
Conflict in Employment elations
The issue of conflict in employment relations presents great importance to companies because of the effects it has on the activity of employees and on the performance of the company. There are several types of organizational conflicts. The most important types of conflict are represented by individual, collective, overt, covert, and others. Based on the paradigms that these situations refer to, conflicts can be industrial, like strikes, breaches, misbehavior, sabotage, and resistance. The numerous causes of organizational conflicts lead to different types of conflicts and strategies used in these cases.
Job egulation Paradigm
Conflicts in job regulation are important because they help reach a level of stability and balance in the system. This objective can be reached by identifying different interests…
1. Gardner, M. & Palmer, G. (1997). Employment Relations. Retrieved June 24, 2012 from http://books.google.ro/books?id=3ol8ZFDn5esC&printsec=frontcover&dq=employment+relations&hl=ro&sa=X&ei=v0nnT93DBo6SswaW0IzgAQ&ved=0CDkQ6AEwAQ#v=onepage&q=employment%20relations&f=false .
2. Cappelli, P. (2008). Employment Relationships: New Models of White Collar Work. Cambridge University Press. Retrieved June 24, 2012 from http://books.google.ro/books?id=Kz8O9cEcFU8C&printsec=frontcover&dq=employment+relations&hl=ro&sa=X&ei=v0nnT93DBo6SswaW0IzgAQ&ved=0CFMQ6AEwBQ#v=onepage&q=employment%20relations&f=false .
3. Gennard, J. & Judge, G. (2005). Employee Relations. Chartered Institute of Personnel and Development. Retrieved June 24, 2012 from http://books.google.ro/books?id=FuUmIixUldwC&printsec=frontcover&dq=employment+relations&hl=ro&sa=X&ei=v0nnT93DBo6SswaW0IzgAQ&ved=0CFkQ6AEwBg#v=onepage&q=employment%20relations&f=false .
4. Pot, F. (2000). Employment Relations and National Culture. Edward Elgar Publishing Ltd. Retrieved June 24, 2012 from http://books.google.ro/books?id=-acyy7yNYgUC&printsec=frontcover&dq=employment+relations&hl=ro&sa=X&ei=107nT5_LIIPUtAbG1dyQAQ&ved=0CD8Q6AEwAjgU#v=onepage&q=employment%20relations&f=false .
That is supposed to have become one market which does not entail any tariff distinctions between the nations. But it should be noted that some of the analysts feel that it will never become a single entity market, but will remain separated into different varying national markets. The reason is being ascribed to "cultural, informational, logistic barriers and perhaps remaining discriminatory barriers all of which imply an incurable tendency to award contracts to local suppliers." (Is Culture a Major Barrier to a Single European Market? The Case of Public Purchasing)
The general aim of free trade has however changed and it is now not limited any more to the removal of barriers in being able to sell the products made in one country to other countries of the world. This is considered to be even more important for that of the developing countries wherein their progress in development made however…
Madsen, Poul Thois. "Is Culture a Major Barrier to a Single European Market? The Case of Public Purchasing" Retrieved at http://www.ihis.aau.dk/~pmadsen/purchase.htm . Accessed 18 September, 2005
Market Access and Protocol Commitments" Retrieved at http://www.uschina.org/public/wto/ch-memo.html . Accessed 18 September, 2005
Non-tariff Barriers to Imports" Retrieved at http://www.wright.edu/~tran.dung/Chapter8_Pugel.htm . Accessed 18 September, 2005
Tariff" Wikipedia, the free encyclopedia. Retrieved at http://en.wikipedia.org/wiki/TariffAccessed 18 September, 2005
The following till take a look at Foreign Corrupt Practice Act or in other words the FCPA.
Discovering the corporate payments difficulty in the middle of the 70s from a blend of work by the Watergate Special Prosecutor office, this includes related additional work and inquiry by SEC-Security and Exchange Commission and the Multinational Corporations Subcommittee by Senator Frank Church. In 1975, within four months, separate hearings were held by the Church Committee on Gulf Oil, Mobil Oil, Northrop, and Lockheed (Koehler). Every one of these corporations became the main subjects of allegations, concerning uncertain payments made either directly or indirectly to officials of foreign government or foreign political parties bearing a business purpose in mind. For example, the Gulf Oil primarily involved the contributions made to political campaigns of the epublic of Korea President. Northrop was mainly involved in making payments to a general in Saudi Arabia. Principally,…
Burns, D., Sullivan, & Gibson. (2009). Navigating the FCPA's Complex Scienter Requirements. Retrieved March 18, 2016, from http://www.gibsondunn.com/publications/Documents/Burns-Sullivan-NavigatingTheFCPAComplexScienterReq.pdf
Harris, A. (2011). Scholarship @ Claremont -- Claremont Colleges Research. The Impact of the Foreign Corrupt Practices Act on American Business from 1977-2010. Retrieved March 18, 2016, from http://scholarship.claremont.edu/
International Whistleblower Reward Law Information Center. (n.d.). History of the Foreign Corrupt Practices Act. Retrieved March 17, 2016, from http://www.internationalwhistleblower.com/history.html
KOEHLER, M. The Story of the Foreign Corrupt Practices Act. Ohio State Law Journal, 73(5). Retrieved, from http://moritzlaw.osu.edu/students/groups/oslj/files/2013/02/73.5.Koehler
Trade Act of 1974 on Euro exchange rates?
Free Trade has been a key agenda for the past three presidents. In an expanding global market, tariffs and trade policies are more important today than they have been in the past. More and more countries are forming alliances such as the North American Free Trade Agreement (NAFTA), the Asian Alliance, and the European Union (EU). These trade agreements are meant to level the playing for all countries, both industrialized and emerging countries.
President Bush's trade policy is aimed at helping to generate American jobs, open markets to American products, and provide economic growth. Sometimes massive increases in imports can have a devastating effect on U.S. industries. [This has been the case for the U.S. steel Industry and is the issue addressed in Section 203 (B) (1) of the Trade Act of 1974. Foreign steel makers have had the luxury of government…
Arnold, James. Steel sector stares into the abyss. BBC News.com. March 6, 2002.
http://news.bbc.co.uk/hi/english/business/newsid_1857000/1857914.stm . Accessed April,
Arnold, James. Steel spat could mean wider worries. BBC News.com. March 6, 2002.
The nature of cross-cultural exchanges in the early modern period
The phenomenon of cross-cultural experiences and exchanges started from the early years and was always the starting point of discovery of the other cultures. On the initial contacts, there were outstanding differences and concerns that the people involved had, with each of the groups of people thinking that the culture of the other was strange and inferior.
The evidence shows that cross-cultural exchanges in the early modern period were stereotypical and condescending. The people of a given nation always saw the other cultures as strange and hence inferior to their own. They tended to consider the cultures they came across as a possible undue interference with their noble and familiar culture. This corruption of their cultures was often discouraged by all means by either taking measures to discourage their own people from accepting the other culture, or trying as…
The Importance of Diplomacy and Foreign Policy in Practice of International elationsBackgroundDiplomacy and foreign policy are core tools used by governments to realize their states national interests, economic, political, or social. Diplomacy is defined by Harold Nicholas as the management of international relations by means of negotiations; the method by with these relations are adjusted and managed by ambassadors and envoys the business or art of the diplomat (Sharp, 2009). Governments leverage assets, such as their economic leverage, military power, and international ties, to realize their objectives. Foreign policy is a diplomatic instrument that is informed by a countrys national interests abroad for political, economic, and military benefits. The use of foreign policies can be accomplished through national interests is founded on strategy and actions to achieve specific…
ReferencesAS, B., 2018. The Study of Foreign Policy in International Relations. Journal of Political Sciences & Public Affairs, 06(04).Erba?, ?., 2013. The Role of Foreign Policy and its Purpose in World Politics. Academic Journal of Interdisciplinary Studies,.German Institute for International and Security Affairs, 2018. New Realities in Foreign Affairs: Diplomacy in the 21st Century. Berlin: SWP Research Papers.Hagmann, J. and Biersteker, T., 2012. Beyond the published discipline: Toward a critical pedagogy of international studies. European Journal of International Relations, 20(2), pp.291-315.Jayamaha, S., 2021. Diplomacy in general. Definition and methods. Munich, GRIN Verlag.Juma, M., 2009. African mediation of the Kenyan post-2007 election crisis. Journal of Contemporary African Studies, 27(3), pp.407-430.Lee, T., 2015. International Relations Theories and International Law. SSRN Electronic Journal.McClelland, A., 2020. Heritage Diplomacy. International Encyclopedia of Human Geography, pp.381-385.Reyes, G., 2002. Four Main Theories of Development: Modernization, Dependency, Word-system, and Globalization. 4th ed. University of Pittsburgh.Sharp, P., 2009. Diplomatic Theory of International Relations. New York: Cambridge University Press.
The Toronto Stock Exchange has long attracted issuers in the mining industry because the level of investor knowledge of this sector has traditionally been higher in Canada. Thus, the TSX has a competitive advantage in attracting new mining issues since those types of companies find it easier to raise capital there than on most other exchanges.
Another major point of competition is the investment banking sector. Firms often choose their exchange based on their ability to raise capital. This requires a strong investment banking sector, and a market in which a broad range of institutional investors participates. This increases the pool of available capital as well as overall market liquidity. For example, London Stock Exchange Chairman Chris Gibson-Smith outlined the need for European capital markets to integrate in order that their liquidity and capital-raising ability match that of the U.S.
Each of the world's major capital markets has recognized the…
Bloomberg, Michael and Schumer, Charles. (2007) Sustaining New York's and the U.S.' Global Financial Leadership. Retrieved June 23, 2008 at http://schumer.senate.gov/SchumerWebsite/pressroom/special_reports/2007/NY_REPORT%20_FINAL.pdf
Gibson-Smith, Chris. (2005). Why Europe's Equity Markets Matter. Speech from FESE Convention, retrieved June 23, 2008 at http://www.londonstockexchange.com/en-gb/about/Newsroom/Media+Resources/Speeches/euroequity.htm
No author. (2008). Leadership in International Mining. TSX Group. Retrieved June 23, 2008 at http://www.tsx.com/en/pdf/Mining_Sector_Sheet.pdf
Bloomberg, Michael and Schumer, Charles. (2007) Sustaining New York's and the U.S.' Global Financial Leadership.
Optimal Foreign Entry Strategy for Jaypee Brothers
Established in 1969, Jaypee Brothers is the largest health sciences publisher in India with offices in the United Kingdom, the United States and Panama. Jaypee Brothers currently publishes more than 350 health science books and journals each year (About Us 2015). The company is currently seeking to develop its presence in other markets including the Middle East and Africa. This paper reviews the relevant literature to provide a brief overview of Jaypee Brothers and to identify a professional entry strategy for the company to enter these new markets. Finally, a summary of the research and important findings concerning an optimal professional entry strategy for Jaypee Brothers are provided in the conclusion.
eview and Discussion
With its headquarters in New Delhi, India, Jaypee Brothers (hereinafter alternatively "Jaypee" or "the company") is a global publishing company with collection centers in the United Kingdom,…
'About Us.' (2015). Jaypee Brothers. [online] available: http://www.jpmedpub.com/aboutus.
'Arabic Publishers Directory' (2015). Publishers Global. [online] available: http://www.
On the whole, American students are sympathetic to the difficulties faced by some foreign students such as in connection with the expense of living in the U.S. without a family support system close by and in connection with language and cultural barriers and prejudices they sometimes face. American students also believe that many foreign students bring a more serious work ethic to school and that they are better educated in their home countries than their American counterparts. Angela Angelov (Biology, 19) said that she believed "Most of the international students have learned all of the prerequisite courses more in depth than I did here…"According to Joe Engle (Chemistry, 21), "They bring a higher work ethic because they have traveled so far to reach their goals." Ben (Engineering, 34) echoed that observation: "Foreign students seem to appreciate the opportunity more" and also that in comparison, "American students seem lazy." Some American…
It also meant greater access to foreign products. Once the American consumer got the taste of the foreign products, the demand for these items exponentially increased. Ultimately, foreign imports allowed for economic growth based on consumption. The sustainability of such a system in questionable and even condemned, but fact remains that it was a real effect of globalization.
Another impact of lifting the trade barriers was felt by the American manufacturers. In this instance, much of the foreign production was sold at prices lower than those of the American manufactured items. Being then unable to compete with the significantly lower prices, some U.S. producers had to declare bankrupt. Consequently, the manufacturing sector of the American economy was damaged. What is even more surprising about this is the fact that the U.S. representatives signed international treaties to allow these negative effects to still occur. A most relevant in this instance is…
Eckes, a.E., Zeiler, T.W., Globalization and the American Century, Cambridge University Press, 2003
Rodrik, D., Has Globalization Gone Too Far? Peterson Institute, 1997
Scheve, K.F., Slaughter, M.J., Globalization and the Perceptions of American Workers, Peterson Institute, 2001
Van Meter Fishback, P., Higgs, R., North, D.C., Libecap, G.D., Government and the American Economy: A New History, University of Chicago Press, 2007
ACA International Implications
The 2010 Affordable Care Act (ACA) seeks to impose new requirements for both employers and individuals in terms of health insurance coverage. However, is the ACA affecting globally mobile workers (those on long-term assignment abroad or in the U.S.), is the ACA altering the Federal Employees Health Benefits Program? The details of the ACA provisions are complex and still evolving. The ACA is altering America's healthcare landscape, affecting insurers, individuals, and employers, including the state and federal governments (Kongstvedt, 2013). Among the notable changes include new marketplaces or public exchanges where persons can buy healthcare coverage and penalties on people who lack health insurance. It is believed that penalties on employers failing to provide coverage will take effect by the end of 2015.
In terms of Federal Employees Health Benefits Program, the Act sets in motion for greatest reform in the employer-offered health benefits in the post-World…
Emanuel, E. J. (2015). Reinventing American Health Care: How the Affordable Care Act Will Improve Our Terribly Complex, Blatantly Unjust, Outrageously Expensive, Grossly Inefficient, Error Prone System. Perseus Books Group
Herzlinger, R. E. (2004). Consumer-Driven Health Care Implications for Providers, Payers, and Policy-Makers. Hoboken, John Wiley & Sons.
Selker, H. P., & Wasser, J. S. (2014). The Affordable Care Act as a National Experiment: Health Policy Innovations and Lessons. Springer Science & Business Media
Kongstvedt, P. R. (2013). Essentials of Managed Health Care. Burlington, MA, Jones and Bartlett Learning.
Belt, One oad
Were I an external consultant for Lenovo, I would outline a number of opportunities and issues for this Chinese company operating in India. I would begin by detailing the various opportunities afforded by the One Belt, One oad plan initially revealed by China's president in 2013 (Kennedy and Parker, 2015). The most significant of those opportunities relates to the infrastructure ambitions of this initiative.
China is planning to unite the majority of the countries surrounding it with unified infrastructure. As such, this goal presents an opportunity for companies in countries close to China (such as Lenovo in London) to assist with the building of this physical infrastructure across roadways. Such building would include roads, highways and railways (Kennedy and Parker, 2013). Additionally, there is a maritime element of this plan. China is also attempting to connect its surrounding countries via ports and the means of sailing from…
Kennedy, S., Parker, D.A. (2015). Building China's "One Belt, One Road." http://csis.org / Retrieved from
risk that Apple Inc. faces with respect to its international economic exposure. Apple designs its products in the United States, manufactures them in China and then sells them all over the world. In order to analyze this exposure, a number of steps will be undertaken. The first step will be to provide an overview of the business, what its foreign exchange exposure is, and how the company manages that foreign exchange rate risk. The subsequent sections will discuss the degree of exposure that the company has to other forms of international risk -- economic risk in particular. There will be an industry and company analysis to provide a framework for this discussion of risk. There is also going to be a discussion of how the company manages the different risks to which it is exposed, and what the analysts' views of this exposure are as well. The final component of…
Adams, S. (2012). Apple's new Foxconn problem. Forbes. Retrieved November 28, 2012 from http://www.forbes.com/sites/susanadams/2012/09/12/apples-new-foxconn-embarrassment/
Apple Inc. Form 10-K for the year ended September 29, 2012. Retrieved November 28, 2012 from http://files.shareholder.com/downloads/AAPL/1748317980x0x610219/112dd7d2-e33a-44 AD-b4ea-8870c5dd9281/AAPL_10K_FY12_10.31.12.pdf
CBO. (2012). An update to the budget and economic outlook: Fiscal years 2012 to 2022. Congressional Budget Office. Retrieved November 28, 2012 from http://www.cbo.gov/sites/default/files/cbofiles/attachments/08-22-2012-Update_to_Outlook.pdf
Conerly, B. (2012). Real estate forecast 2013: The housing market. Forbes. Retrieved November 28, 2012 from http://www.forbes.com/sites/billconerly/2012/10/08/real-estate-forecast-2013-the-housing-market/
Global Fighter Jets Marketing Plan
Global Fighter Jets is poised to provide customers with high-edge military aircraft specifically to combat fighter jet. Our marketing efforts will be geared towards customer's reassurance that we are the first when searching for military fighter jet such as F-35 fighter in Israel. Our key to success will center on the marketing strategy that we will implement, and our marketing strategy is the marketing mix to expand the relationship with existing customers.
Global Fighter Jets will use 4Ps as marketing mix, which include Product, Price, Promotion, and Place. Several reasons make the paper to choose 4Ps as marketing strategy.
Product: A product relates to the specifications of goods as related to the satisfaction of customers. The company chooses product as marketing mix to provide combination of quality, brand name and features to launch the product into the market.
Price: The reason…
Business Monitor International Ltd. (2011). Market Structure & Defence Industry. Venezuela Defence & Security Report.
Bruce, M. Daly, L. & Kahn, K.B. (2007). Delineating Design Factors that Influence the Global Product Launch Process. The Journal Product Innovation Management. 24:456 -- 470.
Chen, M.K. Wang, S.C. & Chiou, C.(2009). Global Logistics Management for the E-Business Policy for Manufacturing. International Journal of Electronic Business Management. 7(2): 86-97.
Cook, N. (1996). Military upgrade market attracting too many players. Interavia Business Technology. 51(602).
Foreign Exchange There are price differences between the U.S. And UK sites for Toys 'r' Us. One example is the animated Talking Ben stuffed bear, which sells for $9.99…Read Full Paper ❯
History - Israel
In addition, a series of joint ventures in which West German steel firms joined with East German firms and Krupp, Klockner, and Thyssen of Germany was pursuing other developmental…Read Full Paper ❯
Foreign Exchange South Africa he currency in South Africa is the rand. he rand is a free floating currency meaning that there are few controls on the value of…Read Full Paper ❯
One of the more popular analytical methods that is used with MT4 that is used to coordinate share trades is based on the Fibonnaci series (each number in this…Read Full Paper ❯
Foreign Exchange isk Management a) What are the causes of UK and Brazilian markets' revenues in Dollars being lower than expected? One of the main causes of the revenue…Read Full Paper ❯
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,…Read Full Paper ❯
Foreign Monetary System A monetary system is any structure initiated by the government and mandated to issue currency, acknowledged as the medium of exchange by its citizens and governments…Read Full Paper ❯
Exchange Rate Crisis Exchange rate crises are quite common phenomena in the economic world. From the 1994 Mexican crisis and the 1997 Asian crisis to the 1999 Argentine crisis,…Read Full Paper ❯
country can interfere in the foreign exchange markets. In many cases, the motivation for doing so lies with propping up exporters, by lowering the value of the domestic currency.…Read Full Paper ❯
exchange rate risk can be hedged. The current cost of the room is £50 per day, which is: 50 * 1.50 = $75.00. For a consumer, the easiest way…Read Full Paper ❯
forward discount in predicting exchange rate modifications. The conclusion of the literature review is that the forward discount is a biased predictor and that are two possible explanations for…Read Full Paper ❯
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…Read Full Paper ❯
ETFs The first step is setting up an investment account is to understand the client. Everything flows from this. The client profile is developed through an extensive interview process,…Read Full Paper ❯
S. billion in 1998. eported as the dominant source of inward FDI in China is that of Hong Kong, followed by Japan, the U.S. And Taiwan. Summary and Conclusion…Read Full Paper ❯
S. directly. Evidently, the long-term objectives indirectly face the smooth running of the U.S. government. Priority should be given to those aspects that will pull the resources of the…Read Full Paper ❯
Foreign Corrupt Practices Act: What it Is and What it Does The Foreign Corrupt Practices Act of 1977 as amended was passed in response to the discovery of numerous…Read Full Paper ❯
Foreign Corrupt Practices Act Ethics Foreign Corrupt Practices Act: How this affects U.S. business interests overseas Simply because United States corporations do business in nations with different ethical standards…Read Full Paper ❯
Foreign business environment: Columbia A. What events (political, economic, and technological) are the most important in recent years that might have impacted the business culture in Colombia? Individuals who…Read Full Paper ❯
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…Read Full Paper ❯
Governments neutralize the monetary impacts of their foreign exchange activities. This sterilization seeks to prevent foreign exchange transactions from posing as obstacles to the domestic monetary policy objectives. The…Read Full Paper ❯
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…Read Full Paper ❯
Exchange Rate Volatility on Trade Flows Exchange Rate Volatility Impact on International Trade Flows Exchange Rate Volatility Impact on International Trade Flows Bretton oods Trade Flow Trade Flow Responsiveness…Read Full Paper ❯
4 trillion to about $5 trillion dollars at the end of 2008 to support a rise in U.S. net external debt from $3.3 trillion to $7.4 trillion. (Ibid. 6)…Read Full Paper ❯
Finance Managing exchange rate risk can be a daunting task for many international firms attempting to expand overseas, acquire new companies, or simply manage its cash flows. Globalization has…Read Full Paper ❯
popularity of foreign restaurant: consumer attitude and behavior toward foreign cuisines in Bangkok Thailand as a tourist destination Thailand has become a tourist destination hotspot for its scenic beauty,…Read Full Paper ❯
MNE Foreign Pricing, Profits One of the most challenging areas of a multinational firm's business is setting target pricing and revenue for foreign markets, given the complications arising from…Read Full Paper ❯
Markets USD/CNY Currency Exchange elationship The amount of money passing through a foreign exchange market was pegged at $4.0 trillion per day in April 2010 (Bank for International Settlements,…Read Full Paper ❯
l Finance In a sense, a foreign acquisition target is assessed in much the same way that any other target would be, but the specifics of the evaluation may…Read Full Paper ❯
Exposure Transaction exposure risk may be defined as "cash flow risk" and is associated with the impact of FX rate moves on exposure due to transactional accounts, regarding exports,…Read Full Paper ❯
It is likely that the retrieved results will indicate a cost of not hedging significantly larger than that of hedging. 4. Conclusions Dozier Industries has a long standing tradition…Read Full Paper ❯
The turnaround could only start with the restructuring of the management team. Among the different communication problems identified, one with most impact on the overall situation at the bank…Read Full Paper ❯
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,…Read Full Paper ❯
fixed and floating exchange rates mechanisms are the exact opposites of one another, the advantages of one are generally the disadvantages of the other. Anyhow, in order to be…Read Full Paper ❯
U.S. Department of Commerce South Africa’s population of 50 million enjoys the most sophisticated, mature and productive economy on the African continent today (U.S. commercial service, 2014). The country’s…Read Full Paper ❯
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…Read Full Paper ❯
Globalization and Education Globalization involves a number of different elements, including economic integration, freedom of capital movements, and the increasing "transfer of knowledge, cultural stability" and an increase in…Read Full Paper ❯
Foreign Policy of China (Beijing consensus) Structure of Chinese Foreign Policy The "Chinese Model" of Investment The "Beijing Consensus" as a Competing Framework Operational Views The U.S.-China (Beijing consensus)…Read Full Paper ❯
Discussion. Translation risk is one of the most difficult risks to address. The company can adopt specific strategies to reduce its exposure to specific risks, for example partnering with…Read Full Paper ❯
Foreign Exchange a) As the AUD is gaining value (buying power) and the EUR is losing value over time, June is in an excellent position with her European suppliers…Read Full Paper ❯
International Finance Exchange ate Movements for the U.S. And Australian Dollar and Hedging On the 9th June 2013 the initial $90,000 investment was worth $94,724.9. Knowing that the exchange…Read Full Paper ❯
Foreign Exchange In November of 2012, the International Monetary Fund (IMF) announced that the Australian and Canadian dollars would be added to its list of reserve currencies. This status…Read Full Paper ❯
Exchange Rate Risk There are a variety of methods that can be used to reduce foreign exchange risk. Companies have been known to use hedging and reciprocal trading deals…Read Full Paper ❯
(Dow Jones and Company, 2009). The DJIA can be used in three principal ways: as a yardstick, as a barometer, or as an investment. When the DJIA is used…Read Full Paper ❯
When this happens, the standard of living and income levels will remain stagnant. (Bhargava, 2006, pp. 341 -- 362) (Cazurra, 2008, pp. 12 -- 27) Moreover, corruption will increase…Read Full Paper ❯
Literature - Latin-American
Yet, what is important to accomplish at this stage is the presentation of the direct effects of the foreign direct investments. If these impacts materialize in growths of the…Read Full Paper ❯
Dell, HP, Microsoft, Exxon Mobil and Wal-Mart has emerged as the strong candidates in the international market, which has been possible only because the companies have avoided and curtailed…Read Full Paper ❯
Indian Legal Environment Foreign Companies Introduction Today, International Businesses buy sell, India. It essential a foreign company planning enter India, understand culture, traditions peoples' mindset. Conflict in Employment elations…Read Full Paper ❯
That is supposed to have become one market which does not entail any tariff distinctions between the nations. But it should be noted that some of the analysts feel…Read Full Paper ❯
FCPA The following till take a look at Foreign Corrupt Practice Act or in other words the FCPA. Discovering the corporate payments difficulty in the middle of the 70s…Read Full Paper ❯
Trade Act of 1974 on Euro exchange rates? Free Trade has been a key agenda for the past three presidents. In an expanding global market, tariffs and trade policies…Read Full Paper ❯
The nature of cross-cultural exchanges in the early modern period The phenomenon of cross-cultural experiences and exchanges started from the early years and was always the starting point of…Read Full Paper ❯
Poetry / Poets
The Importance of Diplomacy and Foreign Policy in Practice of International elationsBackgroundDiplomacy and foreign policy are core tools used by governments to realize their states national interests, economic, political,…Read Full Paper ❯
The Toronto Stock Exchange has long attracted issuers in the mining industry because the level of investor knowledge of this sector has traditionally been higher in Canada. Thus, the…Read Full Paper ❯
Optimal Foreign Entry Strategy for Jaypee Brothers Established in 1969, Jaypee Brothers is the largest health sciences publisher in India with offices in the United Kingdom, the United States…Read Full Paper ❯
On the whole, American students are sympathetic to the difficulties faced by some foreign students such as in connection with the expense of living in the U.S. without a…Read Full Paper ❯
It also meant greater access to foreign products. Once the American consumer got the taste of the foreign products, the demand for these items exponentially increased. Ultimately, foreign imports…Read Full Paper ❯
Health - Nursing
ACA International Implications The 2010 Affordable Care Act (ACA) seeks to impose new requirements for both employers and individuals in terms of health insurance coverage. However, is the ACA…Read Full Paper ❯
Black Studies - Philosophy
Belt, One oad Were I an external consultant for Lenovo, I would outline a number of opportunities and issues for this Chinese company operating in India. I would begin…Read Full Paper ❯
risk that Apple Inc. faces with respect to its international economic exposure. Apple designs its products in the United States, manufactures them in China and then sells them all…Read Full Paper ❯
Global Fighter Jets Marketing Plan Marketing Vision Global Fighter Jets is poised to provide customers with high-edge military aircraft specifically to combat fighter jet. Our marketing efforts will be…Read Full Paper ❯