Foreign Exchange Market Essays (Examples)

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Foreign Exchange Forex the International

Words: 2716 Length: 10 Pages Document Type: Essay Paper #: 79735074

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.

2- Fibonacci

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…… [Read More]

References

Artis, M. & Weber, A. (2000). The Euro: A challenge and opportunity for financial markets.

London: Routledge.

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.
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Foreign Exchange Risk Management in

Words: 5032 Length: 15 Pages Document Type: Essay Paper #: 86866079

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…… [Read More]

References

Ahlberg, J., A. Pitkanen and L.L. Schorsch. 1999. "Forging a New Era for Steel." The McKinsey

Quarterly 83.

Altunisik, M.B. And O. Tur. 2004. Turkey: Challenges of Continuity and Change. New York:

Routledge.
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Foreign Exchange

Words: 697 Length: 2 Pages Document Type: Essay Paper #: 24179300

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…… [Read More]

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Foreign Exchange South Africa the Currency in

Words: 794 Length: 3 Pages Document Type: Essay Paper #: 60873100

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 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…… [Read More]

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.
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F X Markets Today's Foreign Exchange

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

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

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

Works Cited:

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

Cohen, Benjamin. (no date). Bretton Woods System. University of California at Santa Barbara Retrieved April 11, 2009 from  http://www.polsci.ucsb.edu/faculty/cohen/inpress/bretton.html
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Analysis of Foreign Exchange Risk Exposure

Words: 718 Length: 2 Pages Document Type: Essay Paper #: 41292117

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…… [Read More]

References

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.
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Exchange Rate Influence

Words: 808 Length: 2 Pages Document Type: Essay Paper #: 84607261

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…… [Read More]

References

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
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Exchange Rate Determination

Words: 3372 Length: 9 Pages Document Type: Essay Paper #: 79532735

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…… [Read More]

REFERENCES

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.
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Exchange Rate

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

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

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

Bibliography

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

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

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

4. Swann, Christopher (March 2004). Dollar falls as U.S. fails to create new jobs. Financial Times
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Foreign Monetary System

Words: 1423 Length: 5 Pages Document Type: Essay Paper #: 85828963

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…… [Read More]

References

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.
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Market Society and the Public Sphere

Words: 1350 Length: 4 Pages Document Type: Essay Paper #: 55410408

Market Society and the Public Sphere

My journal text comes to illustrate the utmost significance of globalization viewed as the force molding and shaping the current world. It describes the multidimensional aspect of globalization that influences and encompasses all facets of life through an integrated network. Currently, globalization is the buzzword in media articles, daily talks of media people and talks of politicians. There is no aspect of life that is not influenced or affected by globalization (Tober, 2006, 33). However, many people find it difficult to reflect on this phenomenon. This is because the term is applied in so many aspects leading to its ambiguity in defining it according to my text.

Numerous volumes of work have written about globalization in numerous fields such as political, science, business, economics, sociology and many more. This has made the term globalization lack a precise cogent theory and definition. This is seen…… [Read More]

References

Barnet, R. & Cavanagh, J. (2004). Global dreams: imperial corporations and the new world order. New York: Simon & Schuster

Hass, R. (2003). The corporation without boundaries. The new paradigm in business: emerging strategies for leadership and organizational change. New York: Tarcher/Perigee.

Kapstein, B. (2004). Governing the global economy: international finance and the state.

Cambridge. MA: Harvard University Press
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Exchange rate crisis

Words: 905 Length: 3 Pages Document Type: Essay Paper #: 38566061

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…… [Read More]

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Governments' Intervention in the Foreign

Words: 653 Length: 2 Pages Document Type: Essay Paper #: 16356721



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.…… [Read More]

References

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.
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International Monetary System and Exchange Rate Policies

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

International Monetary System and Exchange ate Policies

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

rate parity/purchasing power parity international capital structures.

The international monetary system and exchange rate policies

International Monetary systems

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

Exchange rate policies

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

References

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

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

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

OECD. (2011). The Effects of Oil Price Hikes on Economic Activity and Inflation.
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Impact of Exchange Rate Volatility on Trade Flows

Words: 1762 Length: 6 Pages Document Type: Essay Paper #: 22353467

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

Commodities

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.…… [Read More]

Works Cited

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
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Financial Markets and Financial Intermediaries

Words: 2634 Length: 8 Pages Document Type: Essay Paper #: 20292041

The cost of these funds and funds availability continue to go down due to the competition taking place between these savings and earnings channels. The joining of two distinct parties in investing and growth through financial intermediaries is mostly completed via a financial institution supported by Federal Deposit Insurance Corporation (FDIC).

In the financial intermediation process, financial institutions play a key role by channeling monies from loans and savings to needs of individuals, businesses and governments. As individual persons and businesses save their monies at financial institutions, their accounts normally collect transaction or account maintenance fees. The transaction or account maintenance fees are in turn given to another investment opportunity. A clear example of this is that the money collected from a bank's patrons is used as the bank's money for loans or mortgages.

As mentioned earlier, banks are not the only types of financial intermediaries as other organizations can…… [Read More]

References:

Hiray J. 2008, Financial Intermediaries, All About Business and Management.com, viewed 5

April 2010

James 2008, 9 Types of Financial Markets for Capital Raising, James Cox Finance Blog, viewed

5 April 2010,
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Floating Exchange Rate System for

Words: 629 Length: 2 Pages Document Type: Essay Paper #: 84659324

However, once the floating rate system was implemented, there was a decrease in inflation and unemployment. This helped Chile to experience strong demand for imports and it kept whole sale / retail prices in check. One of the keys to their success was the fact that the central bank utilized flexibility when intervening in the Forex markets. This allowed the country to go through strong periods of stable economic growth and quickly adjust to new challenges in the global economy. (Gregio, 2004)

At the same time, the government must enact policies that will help to support responsible growth. This means that issues such as corruption, crime, inflation, the total amounts of government spending, interest rates and trade figures will influence the prevailing rates in the market. These factors can affect the confidence of traders, investors and ratings agencies. (Walker, 2002)

For example, Jamaica is utilizing a floating rate system. This…… [Read More]

References

Gregio, J. (2004). Flexible Exchange Rate Regime. Chile Central Bank. Retrieved from: http://www.bcentral.cl/estudios/documentos-politica-economica/pdf/dpe11.pdf

Walker, a. (2002). The Microstructure of the Jamaican Foreign Exchange Market. Bank of Jamaica. Retrieved from:  http://www.bankofjamaica.net/uploads/pdf/papers_pamphlets/papers_pamphlets_the_microstructure_of_the_jamaican_foreign_exchange_market__volumes__volatility_and_spreads.pdf
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MNE Foreign Pricing Profits One of the

Words: 1520 Length: 6 Pages Document Type: Essay Paper #: 25455279

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…… [Read More]

Bibliography

http://economics.about.com/od/purchasingpowerparity/a/ppp.htm

http://www.chinatownsydney.com/economics.cfm?id=62

http://ideas.repec.org/p/cpd/pd2002/d4-2.html

http://www.few.eur.nl/few/people/smant/m-economics/bibl/bibl3-ppp.htm
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Impact of China Fixing the USD Cny Exchange Rate

Words: 977 Length: 3 Pages Document Type: Essay Paper #: 33779659

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, 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…… [Read More]

References

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.
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Botswana Bond Market the Development

Words: 3039 Length: 10 Pages Document Type: Essay Paper #: 85313680

Domestic debt is also needed for monetary policy purposes including for sterilizing inflows of foreign exchange." (Kahn, 2005) In addition bond markets assist in the provision of interest rates across the maturity spectrum and more efficient pricing of risk. y providing an alternative source of financing they reduce concentration of intermediation in banks. ecause lending can be hedged in the bond market, banks have the ability to lend longer." (Kahn, 2005) Kahn notes that PECC (2004) states general requirements for bond market development which include: (1) the simultaneous development of market width, market depth and market infrastructure; (2) effective coordination among government agencies; (3) close public-private sector partnership; and (4) regulation focusing on maintaining and enhancing transparency and the treatment of taxation. (Kahn, 2005) Kahn concludes by stating that if bond markets are to be development in SSA or in other emerging markets, the role of the state becomes critical,…… [Read More]

Bibliography

Adelegan, O. Janet and Radzewicz-Bak, Bozena (2009) What Determines Bond Market Development in sub-Saharan Africa? International Monetary Fund. IMF Working Paper. Sept 2009. Online available at:  http://www.imf.org/external/pubs/ft/wp/2009/wp09213.pdf 

Armstrong's Guide to Investing and Doing Business in Botswana (2008) Online available at:

www.armstrongs.bw/.../11%20-%20Doing%20business%20in%20Botswana.doc

Developing Government Bond Markets (2001) International Monetary Fund -- A Handbook. 2001 July. Washington, D.C.
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Exchange Rates and Export Opportunities This Paper

Words: 944 Length: 3 Pages Document Type: Essay Paper #: 33381936

Exchange Rates and Export Opportunities

This paper compares exchange rates between Australia, Great ritain, and Japan from last February 28th, 2003 and August 28th, 2002. Analysis of where a company could focus its export business based on past current and 180 days forward exchange rate trends and other factors will then be examined. Finally a memorandum to convince management that establishing an export business to one of the countries below is a good idea.

Comparative exchange rates between 4 selected countries and the U.S.

elow are the exchange rates listed by the Pacific Stock Exchange for February 28, 2003 for Australia, Great ritain, and Japan. (Pacific Stock Exchange Website)

Code

Country

Units/USD

USD/Unit

AUD

Australia (Dollar)

GP

Great ritain (Pound)

JPY

Japan (Yen)

KRW

South Korea (Won)

elow are the exchange rates listed by the Pacific Stock Exchange for August 28, 2002 for Australia, Great ritain, and Japan. (Pacific Stock…… [Read More]

Bibliography

Bank of England website http://www.bankofengland.co.uk/mfsd/reserves/backinfo.htm

Blaine, Michael, (09-22-1996) Trade, FDI, and the dollar: explaining the U.S. trade deficit. (Foreign direct investment) Sloan Management Review

OZFOREX Web site: http://www.ozforex.com.au/cgi-bin/forwardrates.asp

Pacific Policy Analysis Computing & Information Facility in Commerce - http://pacific.commerce.ubc.ca/xr/data.html
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Exchange Rate Risk Can Be Hedged The

Words: 440 Length: 2 Pages Document Type: Essay Paper #: 50569569

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…… [Read More]

Works Cited:

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
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Exchange Traded Funds

Words: 3535 Length: 10 Pages Document Type: Essay Paper #: 71248148

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, 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.

Client Profile

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…… [Read More]

References

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
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Financial Instrument Institutions and Markets

Words: 475 Length: 2 Pages Document Type: Essay Paper #: 82295895

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 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…… [Read More]

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Foreign Direct Investment Strategy the

Words: 1507 Length: 5 Pages Document Type: Essay Paper #: 76932751

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.

eferences

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.…… [Read More]

References

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: http://www.cushwake.com/cwglobal/jsp/audienceDetail.jsp?audienceId=18&Country=900095&Language=EN&groupBy=audience

Yihang, X. (2012) Multinational Corporations Highly Interested in China's Real Estate. CRI English. Retrieved from:  http://english.cri.cn/6826/2012/11/30/2724s735975.htm
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Foreign Market Entry Strategies for

Words: 1027 Length: 4 Pages Document Type: Essay Paper #: 51518726

19). The family-friendly atmosphere at the company's restaurants has also been conducive to its growth, as well as Applebee's combination of good food and alcoholic beverages. For instance, Crandall and his colleagues suggest that the casual dining nomenclature ". . . includes such settings as Applebee's where the food comes with a relaxed atmosphere. The concept here is 'not-so-fast' food for aging boomers who may still crave a burger but now want to sit down and eat it from a plate, perhaps with a glass of wine" (p. 19). The company has a proven track record of success in its foreign markets, making further expansions a viable proposition as discussed further below.

Identification and Discussion of Potential Foreign Market and Proposed Entry Strategy

In general, companies have a wide range of entry strategies available to enter foreign markets, including using company-owned restaurants that use locally hired managers or franchises (Prater…… [Read More]

References

Applebee's form 10-K. (2011, December 31). United States Securities and Exchange

Commission. Retrieved from http://www.sec.gov/Archives/edgar/data/49754/

000004975412000005/din-12312011x10k.htm.

Crandall, R., Vozikis, G.S. & Sparks, D.L. (1996, Fall). Differentiating restaurant startups: A
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Foreign and Domestic Intelligence the

Words: 6712 Length: 22 Pages Document Type: Essay Paper #: 5885348

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…… [Read More]

References

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

Affairs, 2.
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Foreign Market Entry Diversification Foreign Market Entry

Words: 1536 Length: 4 Pages Document Type: Essay Paper #: 4090952

Foreign Market Entry Diversification

Foreign Market Entry and Diversification

Why Diversify?

Diversification is expanding a company's current operations by adding new markets, products, services or stages of production to its current portfolio. It is all about entering a single or a series of new business lines that differ from its current operations (Cengage, 2006). Murphy Auto Company (MAC) is one of the largest luxury automobile company which wishes to diversify and enjoy even greater profits compared to its competitors. The justification behind the need to diversify first and foremost is the intense competition that the brand faces from cheaper car companies, since due to recession, people prefer buying cheaper alternatives compared to buying such brands like Mercedes and MAC.

Another justification for diversification is the inability of the firm to fully satisfy the needs of the target market owing to the cultural differences of societies they operate in. By diversifying…… [Read More]

Reference

Cengage, G. (2006). Diversification Strategy. Retrieved August 15th, 2012, from enotes.com: http://www.enotes.com/diversification-strategy-reference/diversification-strategy

Russo, B. (2011). China's Automotive Industry in 2011 [PowerPoint slides]. Retrieved from booz & co. And Synergistics Slideshare website:  http://www.slideshare.net/wrusso1011/chinas-automotive-industry-in-2011 

Su, J. Quora. (2011, February 15th). What are the key challenges that companies expanding to foreign markets should take care of? [Web log message]. Retrieved from http://www.quora.com/What-are-the-key-challenges-that-companies-expanding-to-foreign-markets-should-take-care-of

Georgia State University Faculty. (2012). Diversification Strategy [PowerPoint slides]. Retrieved from Georgia State University (GSU), GSU website: http://www2.gsu.edu/~wwwsmg/BA8993week10.ppt
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Market and Behavior Analysis in

Words: 3038 Length: 7 Pages Document Type: Essay Paper #: 55317431

" (Krapels, 2007) it is additionally related "For the futures-only report, spreading measures the extent to which each non-commercial traders holds equal long and short futures positions. For the options-and-futures-combined report, spreading measures to the extent to which each non-commercial trader holds equal combined-long and combined-short positions." (CFTC, as cited in Krapels, 2007) Krapels states that there are areas where dismissal of causation should not be the projectory in keeping them consistent with normal economic analysis which include: (1) perfect storm episodes because there is a likelihood of time periods when the physical energy market condition and the trading strategies of financial market participants are aligned so well that the result is 'herding' or 'bubbles' or their opposite, crashes; and (2) Variations on the market power syndrome in which it is possible that the positions of some market participants - index funds as one example - are so large as…… [Read More]

Bibliography

Johnson, Toni (2007) Oil Market Volatility. 10 Dec 2007 Council on Foreign Relations. Online available at http://www.cfr.org/publication/15017/

Krapels, Edward N. (2007) Financial Energy Markets and the Bubble in Energy Prices: Does the Increase in Energy Trading by Index and Hedge Funds Affect Energy Prices? Testimony Before a Joint Heating of the U.S. Senate Permanent Subcommittee on Investigations of the Committee on Homeland Security and the Governmental Affairs and the Subcommittee on Energy of the Committee on Energy and Natural Resources. 11 Dec. 2007 Online available at http://hsgac.senate.gov/_files/STMTKRAPELASEdward.pdf

Caruso, Guy F. (2007) EIA Short=-Term Energy and Winter Fuels Outlook. Energy Information Administration. DOE/NASEO 2007/08 Winter Fuels Outlook Conference 9 Oct 2007. Washington D.C. Online available at http://www.eia.doe.gov/pub/oil_gas/petroleum/presentations/2007/winterfuels2007/winterfuels2007_files/frame.html

Levin, Carl and Coleman, Norm (2007) Excessive Speculation in the Natural Gas Market. United States Senate Permanent Subcommittee on Investigations- Committee on Homeland Security and Governmental Affairs. June-July Hearings 2007. Online available at http://hsgac.senate.gov/_files/062507Report.pdf
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Market Entry the Introduction of

Words: 9989 Length: 27 Pages Document Type: Essay Paper #: 40661812

com. In case of several companies, enhancing customer relationships is among the most capable features of e-commerce. However, whereas the Internet has presented the consent of a novel method to draw and communicate with the customer, hardly few enterprises have discovered a method to efficiently manage interactions with their customers on the Internet. (David, 2000)

The real skill is involved in making the device suitable to accomplishment of the business strategy and also makes profit persistently. (Howard, 1999) This makes McGrath and Heiens to describe the failures of Internet startups as a moot testimony that "the Internet is a tool, not a panacea" and that a "sound business strategy is always a prerequisite for success" Therefore, even though many successes have appeared to day on the Web in the online industry and in the digital forms in general still more are to be explored for accomplishing long-term goals of the…… [Read More]

References

Allbritton, Marcel M; Rogers, Everett M. (1995) "Interactive Communication Technologies in Business Organizations" the Journal of Business Communication. Volume: 32; No: 1; pp: 36-43

Archer, Norm; Head, Milena; Wang, Fang. (2002) "E-Tailing: An Analysis of Web Impacts on the Retail Market" Journal of Business Strategies. Volume: 19. No: 1; pp: 114-120

Baker, John. F. (December, 1998) "Hyper Wars: Eleven Strategies for Survival and Profit in the Era of Online Business-review." Publishers Weekly. Volume: 12. No: 1; pp: 27-33

Beck, John C; Lynch, Patrick D. (2001) Profiles of Internet Buyers in 20 Countries: Evidence for Region-Specific Strategies. Journal of International Business Studies. Volume: 32; No: 1; pp: 57-63
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Market Screening for Final Exporting

Words: 1493 Length: 5 Pages Document Type: Essay Paper #: 7957189

It revealed the fact that customers were willing to buy chocolate in order to be in fashion.

The government, which is a communist one, has imposed chocolate importers to mark the country of origin in order to provide the customers with the accurate information about the products they offer.

Size, number, and financial strength of competitors. If we take into consideration the report mentioned above, the main competitors are: Dove (38.61%), Cadbury, Le Conte, Nestle, Hershey's, Golden Monkey, Ferrero Rocher, M&M's, Tresor Dore and Shenfeng. These ten producers account for 90% of the chocolate market, while the first three cover about two thirds of the market share. However, among these ten best companies we can only depict two internal brands. These are Golden Monkey (2.94%) and Shenfeng (1.58%). Due to the new regulations regarding the percentages and quality of the ingredients used, many national producers may not be able to…… [Read More]

Bibliography

Chocolate Strives for Standard.,(2004) Retrieved on Nov 28th, 2006 from China Daily, web site: http://www.chinadaily.com.cn/english/doc/2004-12/24/content_402994.htm

Parry, Richard Lloyd, (2006), For Lovers of Chocolate, future could be very dark., Retrieved on Nov 28th, 2006, from The Times, web site: http://www.timesonline.co.uk/article/0,25689-2079799,00.html

Sachs, Jeffrey D. (2004), Welcome To The Asian Century. By 2050, China and maybe India will overtake the U.S. economy in size. Retrieved Nov 28th, 2006, from Fortune, web site: http://money.cnn.com/magazines/fortune/fortune_archive/2004/01/12/357912/index.htm
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Foreign Corrupt Practices Act Ethics Foreign Corrupt

Words: 701 Length: 2 Pages Document Type: Essay Paper #: 1044551

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 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…… [Read More]

References

Adkins, Robb & Segal, Dina. (2012). Is FCPA Enforcement in Russia the Next China? Law.com.

Retrieved: http://www.law.com/jsp/cc/PubArticleCC.jsp?id=1202563354894&Is_FCPA_Enforcement_in_Russia_the_Next_China

Barstow, David. (2012). Vast Mexico bribery case hushed up by Wal-Mart after top-level struggle. The New York Times. Retrieved:

http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-a-bribe-inquiry-silenced.html?_r=2&hp
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Managing Exchange Rate Risk

Words: 980 Length: 3 Pages Document Type: Essay Paper #: 86144357

Managing Exchange ate isk

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

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

References

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

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

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

Grady, G. (2010). Foreign Exchange Risk Management Methods. E Zine Articles. Retrieved from http://ezinearticles.com/?Foreign-Exchange-Risk-Management-Methods&id=3047383
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International Financial Markets and Institutions Throughout the

Words: 2559 Length: 8 Pages Document Type: Essay Paper #: 45284927

International Financial Markets and Institutions:

Throughout the globe, today's landscape of international financial market and institutions has continued to experience several changes that require practitioners to examine new models. The need for practitioners to examine new models that are relevant to the state of these markets and institutions has also been necessitated by the recent events that contribute to financial crises, which have been very dramatic. Actually, the recent financial crisis has had significant impacts on the financial institutions and markets resulting in the need for changes. International financial markets and institutions have become an important aspect of economies because they affect daily life. This is primarily because they involve the huge flow of different types of funds in the entire economy that in turn impact the profits of businesses, production of goods and services, and economic well-being of countries. In some cases, the events in these institutions and markets…… [Read More]

References:

Accounting Education (2010), International Capital Market, Accounting Education, viewed 7

June 2012,

Australian Securities Exchange (n.d.), Absolute Return Funds, Australian Securities Exchange,

viewed 7 June 2012,
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International Financial Markets and Institutions

Words: 3339 Length: 10 Pages Document Type: Essay Paper #: 65472909

27-29) This provoked financial demands and awareness of the people in different parts of the world. People and businesses are dissatisfied with the traditional financial systems due to lack of opportunities for investors. Businesses today require more diversified portfolios for investments because this will reduce their investment risks and increase the probability of future capital flows.

Increased capital mobility has increased the importance of exchange rates which is serving as a monetary policy channel in some industrialized economies. In mid 2000s, there was a sharp shift in the flow of international investments and savings (geographic pattern) resulting in the segmentation of current account imbalances. This was also a major contributing factor. Additionally, the domestic financial markets were also affected by the change in regulatory environment. The two important factors for this are as follows:

1. apid growth of OTC (over-the-counter) markets of derivatives in terms of complexity as well as…… [Read More]

References

Bekaert, G., Harvey, C. And Lundblad, C. 2005. Does financial liberalization spur growth? Journal of Financial Economics 77, 3 -- 55.

Edison, H., Klein, M., Ricci, L. And Slok, T. 2004. Capital account liberalization and economic performance: survey and synthesis. IMF Staff Papers 51, 111 -- 115.

Kaminsky, G. And Reinhart, C. 1999. The twin crises: the causes of banking and balance-of payments problems. American Economic Review 89, 473 -- 500.

Klein, M. 2005. Capital account liberalization, institutional quality and economic growth: theory and evidence. Working Paper No. 11112. Cambridge, MA: NBER, pp.19-21.
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Risk Analysis Financial Markets Main Techniques Risk

Words: 1670 Length: 5 Pages Document Type: Essay Paper #: 39156595

isk Analysis Financial Markets Main Techniques isk Analysis

isk analysis in the financial markets

This essay mainly intends to outline and explain the objective of risk analysis in the financial market and the main techniques used in risk analysis. In a bid to answer this question the study will first of all include a summation of the types of risks that are found in the financial markets. The financial market here has been classified into three groups that are; the stock market where company stock and shares are traded, the bond market where the Australian government usually sell its' treasury bills and bonds and lastly the international financial market.

Different risk analysis technique will spelt out in the two markets and then the objectives of risk analysis will then be mentioned before the essay concludes.

Types of risk in the financial markets

In his studies Jensen (2009) noted that there…… [Read More]

References

Bollerslev, T., Engle, R.F. And Wooldbridge, J. 2008, "A Capital Asset Pricing Model with Time-Varying Covariances" Journal of Political Economy, 96, 116-31

Friedman B.M. And Hahn F.H. 2007, "Handbook of Monetary Economics, North Holland pp 45-98

Jensen, M.C. 2009, "Risk, the pricing of capital assets and the evaluation of investments portfolios" Journal of Business, pp, 62, 162-247

Lintner, J. 2005 "The Valuation of Risk Assets and the Selection of Risky Investments in Stock
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U S Trade Balance & Exchange

Words: 2380 Length: 6 Pages Document Type: Essay Paper #: 88950540

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…… [Read More]

References

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
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Risks in Export Market There Is Need

Words: 2999 Length: 10 Pages Document Type: Essay Paper #: 15394285

isks in Export Market

There is need for companies to develop a professional approach before venturing into the exporting business. The management of the company is supposed to be committed extremely as well as devoting time and money in commencing the campaigns of export. A company is supposed to be ready to face greater competition as well as more stringent rules and regulations concerning products and packaging due to the variance in rules to which or across which the company will be exporting.

In the process of exportation, there are a number of risks that the company will face. These elements of risks are encountered in every commercial transactions as well as the complexity of the environments that exporters operate in. The content of this paper will analyze risks that a company can face while entering the field of exporting as well as discussing the roles of intermediaries in the…… [Read More]

References

Aaby, N. & S. Slater. (1989). Management Influences on Export Performance: A Review of the Empirical Literature1978-88. International Marketing Review, 6: 7-26.

Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, (2007). "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17: 99-120.1997. Gaining and Sustaining Competitive Advantage. Reading, MA: Addison.

Cornelius Bothma (2012). Managing your export risk. EXPORTHELP. Retrieved April 13, 2012 from  http://www.exporthelp.co.za/modules/10_risk/intro.html
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International Financial Markets and Institutions

Words: 3465 Length: 10 Pages Document Type: Essay Paper #: 90999610

due to changes in the economical, financial, political and technological changes, the capital markets across the world are highly influenced by the changes. As compared to the past, the development in the financial sector has been observed to be at the highest rates. In order to understand and analyze the changes in the global capital markets the below report has been constructed.

Based on the theme idea, which is the change in the capital market due to many factors and elements, the report below tends to discuss and analyse the impacts of financial deregulation and capital control on financial globalization and international diversification. This will allow understanding of how these two elements are supporting the financial globalization. A part from this, the report will also analyze the role of financial innovation and advancements and technologies on international investments. Moreover, the risks and benefits that are associated with the carry trade…… [Read More]

References:

Buch CM, 2004, Globalization of Financial Markets: Causes of Incomplete Integration and Consequences for Economic Policy, Springer, Germany

Collier P & Dollar D, 2002, Globalization, Growth & Poverty, Oxford University Press, GB

Henderson C, 2006, Currency Strategy, John Wiley & Sons, USA

Lien K, 2009, Day Trading and Swing Trading the Currency Market, 2nd Edition, John Wiley & Sons, Canada
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Popularity of Foreign Restaurant Consumer Attitude and

Words: 7176 Length: 27 Pages Document Type: Essay Paper #: 90727544

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…… [Read More]

References

"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.
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Finance Managing Exchange Rate Risk Can Be

Words: 1166 Length: 3 Pages Document Type: Essay Paper #: 48275278

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 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…… [Read More]

References

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
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Global Financial Markets' Refers to

Words: 324 Length: 1 Pages Document Type: Essay Paper #: 32261373

Investors from all over the world sunk money into Dubai-based projects, including those of Dubai orld. The global financial crisis, however, has slowed the Dubai economy to such a degree that it can no longer meet its debt obligations. Global investors who had been counting on high returns at relatively low risk are now seeing the value of their debt holdings diminish.

The fluid movement of capital around the world has allowed for thousands of powerful investors to put money into Dubai's economic development, which spreads the risk of such development around the world. Thus, when Dubai's economy falters and the state-run company cannot pay its debts, it reverberates around the global financial markets, which now must deal with Dubai's apparent lack of creditworthiness.

orks Cited:

Giddy, I. (1993). Global Financial Markets. Boston: South-estern College Publishing.

No author. (2009). Standing still but still standing. The Economist. Retrieved November 27, 2009…… [Read More]

Works Cited:

Giddy, I. (1993). Global Financial Markets. Boston: South-Western College Publishing.

No author. (2009). Standing still but still standing. The Economist. Retrieved November 27, 2009 from http://www.economist.com/businessfinance/displayStory.cfm?story_id=14977157
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Economic Modelling and Exchange Risk Exposure

Words: 5805 Length: 16 Pages Document Type: Essay Paper #: 641239

Econometric Modeling

Financial risk is currently at the center of all economic activity due to the incredibly unstable financial environment of the world economy. As a consequence the search for ways to reduce risk has taken a front seat in the important issues of our day. Several instruments exist in order to increase risk reduction possibilities, these include forward and futures contracts as well as various derivatives. That the most optimal number of risk reduction tools is used is vital. That ratio, the optimal number of risk reduction instruments, is decided by the relationship that exists between the spot instrument and the risk reduction tool. A time varying parameter model has been proven to be more effective in finding the relationship between economic variables and can therefore find an optimal reduction risk ratio that is not constant and can be controlled (Hatemi-J and oca, 2006). The economic exposure can be…… [Read More]

References

Adler, M., and Dumas, B., (1984) Exposure to currency risk: definition and measurement. Financial Management 13, 41 -- 50.

Baillie, R.T. And R.J. Myers (1991). Bivariate GARCH Estimation of the Optimal Commodity Futures Hedge. Journal of Applied Econometrics, 6, 109-124.

Butterworth, D. And Holmes, P. (2001). The hedging effectiveness of stock index futures: Evidence for the FTSE-100 and FTSE-Mid 250 indexes traded in the U.K., Applied Financial Economics, 11, pp. 57-68.

Bystrom, H.N.E (2003). The Hedging Performance of Electricity Futures on the Nordic Power Exchange. Applied Economics, 1, 1-11.
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Chinese Car Market an Analysis

Words: 8417 Length: 33 Pages Document Type: Essay Paper #: 26761132

The process would then need to continue so that the changes that can be seen in the environment can also affect the changes in entry strategies.

Environmental factors, economic factors, political/legal factors, social/cultural factors and also technological factors should all be considered. The legal factors that need to be addressed include issues in employee law, monopolies and mergers legislation, environmental protection laws, and wider issues such as foreign trade regulations. The political factors refer to the stability of the government. The taxation policy, the government spending, the relationship that the government has with other countries, and the industrial policy and all issues should be considered.

The economic factors that need to be addressed refer to inflation, disposable income, unemployment, business cycles, GNP growth rates, interest rates, exchange rates, energy, and the basic prices for raw materials. Factors from cultural and social standpoints include population demographics, the income distribution, what levels…… [Read More]

Bibliography

Altman, E. & Kao, D.L. (1991). Corporate Bond Rating Drift: An Examination of Rating Agency Credit Quality Changes Over Time. New York University-Salomon Brothers Working Paper S-91-40.

Billet, M. (1996). Targeting Capital Structure: The Relationship Between Risky Debt and the Firm's Likelihood of Being Acquired. Journal of Business.

Ederington, L., Yawitz, J., & Roberts, B. (1987). The Information Content of Bond Ratings. Journal of Financial Research 10, 3 (fall): 211-26.

Kaplan, R. & Urwitz, G. (1979). Statistical Models of Bond Ratings: A Methodological Inquiry. Journal of Business 52, 2: 231-61.
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Financial System US Financial Markets

Words: 696 Length: 2 Pages Document Type: Essay Paper #: 339404



Interest rates are very low in the U.S. right now, and this should mean economic expansion. The U.S. is the largest single national economy is the world, so how the U.S. performs in terms of its economics is an important thing for the world. Growth in the U.S., spurred by low interest rates, should mean growth elsewhere as well, since the U.S. can buy more products from those countries and sell more products to them, too. If the economy begins to grow too quickly, the Fed will have to lower interest rates in order to slow down the pace of growth.

For companies that are looking to overseas markets, it is important to remember that there are foreign exchange issues. Foreign exchange rates are volatile, and this means that companies need to pay attention to how those rates move. A rate change could mean that something is either more profitable…… [Read More]

Works Cited:

Fed. (2013). The structure of the Federal Reserve System. Federal Reserve Education.org. Retrieved May 5, 2013 from http://www.federalreserveeducation.org/about-the-fed/structure-and-functions/

Moffat, M. (2013). Expansionary monetary policy vs. contractionary monetary policy. About.com. Retrieved May 5, 2013 from http://economics.about.com/cs/money/a/policy.htm
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Au Dollar and Japanese Beef Market Appreciation

Words: 782 Length: 2 Pages Document Type: Essay Paper #: 43397173

AU Dollar and Japanese Beef Market

Appreciation of AUD 2012-2013- The AUD has had a strong appreciation over the past decade, which has led many scholars to be concerned about the impact the high exchange rate may have on certain trade-exposed sectors of the economy. Over the past few years the AUG has generally been on an upswing, at least on eal GNE, in particular since the trade boom began around 2004. The primary reason for the AUD's appreciation is that Australia's terms of trade have doubled since the millennium, with a particular rise in commodity export prices in the last few years. This has happened because higher commodity prices lead to increased investment that expands capacity in the resources sector and higher aggregate incomes result from the rise in trade -- then the rise in consumption spending on domestic products. The higher exchange rate then promotes the reallocation of…… [Read More]

REFERENCES

Aussie Dollar Barometer. (14 June 2013). Retrieved from: https://www.commbank.com.au / content/dam/commbank/corporate/research/publications/foreign-exchange/aussie-dollar-barometer/2013/140613-ADB.pdf

Beeson, M. (n.d.) Bilateral Economic relations in a Global Political Economy: Australia and Japan. Espace library. Retreived from: http://espace.library.uq.edu.au/eserv.php? pid=UQ:10524&dsID=mb_cc_pre97.pdf

Garton, P., et al. (2012). Understanding the appreciation of the Australian Dollar and its policy implications. Treasury.gov.au. Retrieved from: http://www.treasury.gov.au/~/media / Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%202/Downloads/03_Appreciation_of_the_Aust_dollar.ashx

Paish, M. (17 January 2012). Big Drop in Australian Meat Exports to Japan. AFN Food For Thought. Retrieved from: http://www.ausfoodnews.com.au/2012/01/17/big-drop-in-australian-meat-exports-to-japan.html?utm_source=feedburner&utm_ medium=email&utm_campaign=Feed%3A+AustralianFoodNews+%28Australian+Food+News%29
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How to Hedge for Exchange Rate Risks in Corporations

Words: 2511 Length: 8 Pages Document Type: Essay Paper #: 16447902

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, 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…… [Read More]

References

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.
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Dozier Industries Exchange Rate on

Words: 1593 Length: 5 Pages Document Type: Essay Paper #: 19223105

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 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…… [Read More]

References

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
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National Australia Bank the Foreign

Words: 1223 Length: 4 Pages Document Type: Essay Paper #: 15835778



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…… [Read More]

Bibliography

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
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Exchange Rate Basic Questions

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

Currency

Appreciate, depreciate

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

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

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

References

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

Words: 870 Length: 3 Pages Document Type: Essay Paper #: 3255356

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…… [Read More]

Bibliography

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
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Exchange Rate Issues for Deere

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

Finance

Managing Financial isk including Currency Exchange ate isks

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

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

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

References

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

WalMart, (2014), WalMart Annual report, accessed at http://stock.walmart.com/annual-reports
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Market Driven Management

Words: 25695 Length: 75 Pages Document Type: Essay Paper #: 32150042

Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense pressure to perform. The amount of capital investment investments required to get a drug from conception, through clinical trials and into the market is enormous. The already high-strung pharmaceutical industry is increasingly investing greater amounts of resources in search of the next "blockbuster" drug that can help them gain market position and profits. Laws, regulations and patents are important to the industry while spending billions of dollars in ensuring the copyright of their products.

It is the intention of this…… [Read More]

Bibliography

Ansoff, H.I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113-124.

Ansoff, H.I. (1965). Corporate Strategy. New York, NY: McGraw-Hill.

Ashour, M.F., Obeidat, O., Barakat, H., & Tamimi, A. (2004). UAE Begins Examination of Patent Applications. Tamino.com. Retrieved January 18, 2004, from the World Wide Web: http://www.tamimi.com/lawupdate/2001-01/intprop.htm

Bain, J.S. (1954). Economies of scale, concentration, and the condition of entry in twenty manufacturing industries. American Economic Review, 44, 15-36.
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Foreign Students in Higher Education

Words: 2665 Length: 8 Pages Document Type: Essay Paper #: 83790039

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…… [Read More]

References

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.
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International Financial System

Words: 746 Length: 3 Pages Document Type: Essay Paper #: 94888039

Soros

International Currency Markets

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

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

Works Cited

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

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

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

Wal-Mart Accounting and Finance

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

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

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

References

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

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

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

Nathan, A.J. (2012). Wal-Mart in China. Foreign Affairs, 91(3), 190-191.
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International Business Identify the Risks

Words: 2009 Length: 6 Pages Document Type: Essay Paper #: 9312730



Another reason why corporations choose to hold cash balances in a centralized repository is that the variety of accounts can be better managed as a mutual fund more complex investment structure than would be the case if the subsidiary alone managed the funds. A greater quality of information is available for example in the leading financial centers globally that would otherwise not be the case in more remote regions, making it possible to make more informed and correct decisions (Mitsos, 1997). The accuracy, efficiency and speed of decision-making based on more efficient use of information has led to more advanced forms of cash management than would have been the case on a per-subsidiary level (Fresard, Salva, 2010). Lastly, by having a centralized depository of cash for all subsidiaries, firms can hold less accumulated total cash, freeing up financial resources for other investments (Fresard, Salva, 2010). Companies become more efficient at…… [Read More]

References

Elliott, Graham, & Bewley, Ronald. (1994). The transmission of monetary policy: The relationship between centralized depositories and Monetary policy. Economic Record, 70(208), 19.

Fresard, L., & Salva, C.. (2010). The value of excess cash and corporate governance: Evidence from U.S. cross-listings. Journal of Financial Economics, 98(2), 359.

Hill, C.W.L. (2011). International business: Competing in the global marketplace (8th ed.). New York, NY: McGraw-Hill/Irwin.

Nicholas Mitsos. (1997, November). Virtual Group Treasury. TMA Journal, 17(6), 24-30.
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Challenging the Beijing Consensus China Foreign Policy in the 21st Century

Words: 24240 Length: 60 Pages Document Type: Essay Paper #: 17194104

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) Trade Agreement and Beijing Consensus

Trading with the Enemy Act

Export Control Act.

Mutual Defense Assistance Control Act

Category B

Category C

The 1974 Trade Act.

The Operational Consequences of Chinese Foreign Policy

The World Views and China (Beijing consensus)

Expatriates

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

Chapter 5

The versions of China (Beijing consensus)'s trade development

The China (Beijing consensus) Theory of Power Transition

eferences

Foreign Policy of China (Beijing consensus)

Chapter 1

Abbreviations

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…… [Read More]

References

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
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U S Macro Economy Which Was Considered to

Words: 1238 Length: 4 Pages Document Type: Essay Paper #: 97755054

U.S. Macro economy

economy which was considered to be the world's largest has still not been able to recover completely from the financial crisis and resulting recession that hit in 2008. At the national level, spending increase to more than 25% of GDP in 2010, later in 2011 gross public debt exceeded 100% of GDP. The process of recovery for U.S. economy in the first quarter turned out to be weaker than expected. From January through March, the gross domestic product (GDP) of the nation grew at a 1.8% annual rate. The economy of U.S. has grown for 15 consecutive quarters; however the pace of those gains was about 2% which was actually in the weakest recoveries since World War II. U.S. economy is being held back by its tightening fiscal policy. In this year, the spending cuts are estimated to be $85 billion and expected to grow to $109…… [Read More]

References

Danielson, A. (1994). The economic surplus. Westport, Conn.: Praeger.

McCarty, Nolan, Keith T. Poole, and Howard Rosenthal (2006). Polarized America: The Dance of Ideology and Unequal Riches. Cambridge, MA: The MIT Press.

Moffatt, M. (1965).The Economic Effect of Tariffs. [online] Retrieved from: http://economics.about.com/cs/taxpolicy/a/tariffs_3.htm [Accessed: 28 Jun 2013].

Ormerod, Paul. (2010). The Current Crisis and the Culpability of Macroeconomic Theory. Twenty-First Century Society.
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What Is the Market-State

Words: 3079 Length: 10 Pages Document Type: Essay Paper #: 24148627

Market-State

oth Phillip obbit and Richard Robison offer accounts of what a market-state is. obbit contends that the core features of the market-state are a crisis of the nation-state, a transformation of core state functions, relations of national states to transnational markets, and cosmopolitan culture. Finance is at the center of the culture, the money economy. Governments are more centralized but weaker because power is allocated by the money men, the banks, the managers of finance and capital, and governments are merely their footstools. According to Robison, on the other hand, market-states are neo-liberal, techno-managerial and instrumental, and citizens are clients and consumers. oth describe the materialistic, consumerist society, yet each has its own theoretical approach and unique conceptualization. This paper will compare obbit's and Robison's accounts of market-states and use the writings of Smith, Keynes, Marx and others to help illustrate the nature of the two.

Differences of What…… [Read More]

Bibliography

Bobbit, P (2011) The Shield of Achilles: War, Peace, and the Course of History, NY:

Anchor Books

Keynes, JM (1920) The Economic Consequences of the Peace, NY: Harcourt Brace.

Pabst, A (2010) The Crisis of Capitalist Democracy, Telos 152: 44-67.
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Finance Discuss Some of the Motivations Firms

Words: 1676 Length: 6 Pages Document Type: Essay Paper #: 66381050

Finance

Discuss some of the motivations firms have for setting up production facilities in other countries. Will the effect on the host country differ depending upon the motivation? Explain. Will the effect on the source country differ depending upon the motivation? Explain. What relationship might trade barriers (or the lack of trade barriers) have in determining a company's primary motivation for producing abroad?

The reasons for the foreign investment are high profit returns, and the rate of return is dependent upon the capital invested, the tax reductions and employees' fund. The foreign investment or production company is highly welcomed by the government because the company is expected to bring in foreign exchange. THz enhances the purchasing power of the country in international currency; thereby the nation has to rely minimum on loans and international borrowing.

The major motivation that the international investor has towards foreign investment is that cheap labor…… [Read More]

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Bernstein J Gubsky A and Yudin P

Words: 982 Length: 3 Pages Document Type: Essay Paper #: 65063874

Bernstein, J., Gubsky, A., and Yudin, . Under the Roof, The Moscow Times. (1995), section 830.

Fielding, David. (2000). Can olitical Instability Generate Business Cycles? Evidence from the Intrifada. Retrieved 9-23-05 from unknown. Website: http://www.le.ac.uk/economics/research/ReEc/lec/lesson/econ00-9.pdf

Hong, Jung Hwa, Jones, eter, and Song, Haiyan. (1999). olitical Risk and Foreign Investment Decision of International Hotel Companies. Retrieved 9-23-05, from Hotel.Online. Website: http://www.hotel-online.com/Trends/anAmerroceedingsMay99/olRiskInvestHotels.html

Hubbard, Joan C. (1997). Doing Business in Moscow: Threats and Opportunities. Retrieved 9-23-05, from B>Quest. Website: http://www.westga.edu/~bquest/1997/moscow.html

What factors contribute to the fluctuation of exchange rates?

In every currency transaction there are risks due to fluctuations on the realized value of such transfers. Many different factors contribute to the fluctuations of exchange rates. There are economic factors, political factors, and psychological factors to consider. Consumer driven supply and demand plays a part in the fluctuations that take place in the currency market. Another important contributing factor when dealing with foreign…… [Read More]

Political instability is a feature of the general environment and can manifest itself in a variety of ways in business transactions. It differs from political risk, which refers to the possibility that political decisions or events in a country will affect the business climate in such a way that investors will lose money or not make as much money as originally expected. However, an unstable political environment can create, or hint at, possible political risk. This can affect the foreign business world in many different ways. There may be a decline of the stock market and a decline in foreign investment due to fear of political risk. An increase in crime and corruption can upset businesses operating within a foreign country, such as was the case in Moscow. According to studies performed at the beginning of the Yeltsin presidency in 1994, "all retail stores, restaurants, cafes, kiosks, clothing markets, and auto importers, along with seventy to eighty percent of privatized enterprises and commercial banks, were making protection payments to criminal gangs." (Bernstein, et al., 1995) Legal factors affected by political instability in turn affect doing business in foreign countries. Political instability can create different levels of taxation and change zoning laws. How a business is required to be registered may change and the actual operation laws and tax laws themselves may also change. The amount of government support a foreign business receives and the way a foreign business is allowed to advertise can be affected. Also, the privatization of local companies and services may create more competition and ultimately push foreign businesses out of a market. These are all some of the ways that political instability can affect doing business in foreign countries.

3. What are some differences between business and financial risks?

Business and financial risks sometimes overlap, but the two terms define different sets of risks. Financial risk is the possibility that a bond issuee will default, by failing to repay principal in a timely manner. So financial risks deal with the actual risk of a business not being able to recover money lent. Business risk is the risk associated with the unique circumstances of a particular company, as they might affect the price of that company's securities. Unlike financial risks, business risks are not always risks directly associated with a company's monetary assets, even though they can ultimately affect the financial bottom line of a company. Also, business risks will vary depending on the type of business, while financial risks are similar throughout business. Examples of financial risks may be loans or company issued credit lines. An example of a business risk may be a clothing retailer deciding to display a clothing line by an unknown designer.
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Globalization on Trade Imbalances Globalization

Words: 1242 Length: 4 Pages Document Type: Essay Paper #: 84232502

The depreciating dollar improves the price competitiveness of U.S. exports in the foreign market thus reducing the deficit in the balance of trade. Dollar depreciation has a quicker and stronger impact to the exports than it has to the imports.

The slow effect of depreciating dollar on the trade balance resulted from import volumes increase. The U.S. imports were decreased in response to exchange rates with a dollar depreciating slowing the growth. The rapid shift of trade towards low cost emerging economies continues to corrode U.S. price competitiveness, which would improve the depreciating dollar. The consistence increase in oil prices also acted as a main contributor to the increased depreciation of dollar. This lead to commodity inflation affecting people's lives directly. U.S. enjoyed a period of better economic growth in year 2006 boosting the imports. This helped in increasing the value of the dollar restoring a better economy to the…… [Read More]

References

The World Economic Forum in its 2010 Global Competitiveness Report ranks the United States as the fourth most competitive economy in the world and the United States has been at or near the top of this ranking since it began in 1979, http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010-11.pd

China Daily, October 28, 2010, "China's Twelfth Five-Year Plan signifies a new phase in growth," http://www.chinadaily.com.cn/bizchina/2010-10/27/content_11463985.htm and Martin Feldstein, "The End of China's Surplus, Project Syndicate, January 28, 2011, http://www.project-syndicate.org/commentary/feldstein32/English.

Elgin & David, 2011. Social science an Introduction to the Study of the Society. 14th Edition. Allyn and Bacon Publishers. ISBN-13: 978-0-205-70271-8.
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Balance of Payments Explain Briefly

Words: 2317 Length: 7 Pages Document Type: Essay Paper #: 16940898

S. economy coupled with slower growth rates in key U.S. trade partners, and not a sign of poor economic health.

as this an attempt of the administration to put a happy face on bad economic news? Quite simply, U.S. consumers, said the Bush Administration, had more dollars to spend on imported goods, hence the increased gap -- the gap in the short run was a sign of health, said the administration. "e have an economy that is growing faster than most around the world and that can increase the trade deficit," said hite House spokesman Scott McClellan. The Commerce Department said the U.S. trade gap widened in October to a record $55.45 billion. (AP ire, 2004)

Outside analysts also looked to the higher cost of crude oil and petroleum products played a key role in the October figures, putting a not-so happy face on the balance of payments deficit in…… [Read More]

Works Cited

AP Wire Website. (2004) "U.S. Trade Gap Widens as Production Rises." October 2004.. Retrieved 17 Dec 2004 at http://app.quotemedia.com/data/newsItem.htm?storyId=1533543

Balls, a. (19-20 June 2004) "U.S. current account deficit £1.5bn a day." Financial Times.

Ruby, P. (1999) "Balance of Payments." Digital Economis website last updated 2003. Retrieved 17 Dec 2004 at http://www.digitaleconomist.com/bop_4020.html

Hughes, J. (14-15 August2004)" Record U.S. trade deficit follows rise in imports,." Financial Times.
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Transaction Exposure There Are a

Words: 780 Length: 2 Pages Document Type: Essay Paper #: 6991166

As a result, these companies maintain foreign currency trading desks to hedge the transaction risk that they face as a consequence of such dealings (Myers, 2010).

In order to address its foreign currency transaction risk, some firms prefer to finance locally. McDonald's, for example, has a number of strategies that it uses to hedge its exposure to transaction risk. The company prefers, where possible, to finance locally and to purchase its supplies locally as well. This allows it to keep revenue in foreign countries, reducing the overall amount of transaction risk that it faces with such operating hedges. As a result, approximately 40% of the company's debt is denominated in foreign currencies, primarily the pound, euro, and the Australian and Canadian dollars. hile this strategy still leaves McDonald's exposed to translation risk, it greatly reduces the firm's total transaction risk, because it reduces the overall percentage of transactions that involve…… [Read More]

Works Cited:

Gasparro, a. & Stynes, T. (2011). McDonald's 4Q profit rises 2.1% amid stronger sales. Nasdaq. Retrieved January 28, 2011 from http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201101240852dowjonesdjonline000146&title=mcdonalds-4q-profit-rises-21amid-stronger-sales

Kelley, M. (2001). Foreign currency risk: Minimizing transaction exposure. Virginia Lawyer. Retrieved January 28, 2011 from  http://www.vsb.org/docs/valawyermagazine/jj01kelley.pdf 

Myers, R. (2010). The calm before reform. CFO Magazine. Retrieved January 28, 2011 from http://www.cfo.com/article.cfm/14526563?f=singlepage

Phillips, M. (2011). Interesting: Google's trading desk. Wall Street Journal. Retrieved January 28, 2011 from  http://blogs.wsj.com/marketbeat/2011/01/28/interesting-googles-trading-desk/
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Hard and Soft Currencies

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

Soft Currencies

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

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

Works Cited

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

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

Investopedia. (2005) "Soft Currency." Retrieved 12 Jan 2005 at
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Customer's Loyalty in the Online

Words: 9559 Length: 35 Pages Document Type: Essay Paper #: 32168162

anking and financial services includes such firms as investment banks, commercial banks, brokerage firms, and credit card institutions. The common it pulse throughout the daily operations of these organizations involves utilizing systems to communicate between branches and subsidiaries, establishing operations throughout the world, communicating with the end customer in order to facilitate transactions, and analyzing customer and market attributes in order to reduce uncertainties in such aspects as pricing policies" (p. 24). Some of the more salient issues affecting the financial services industry today are described further in Table ____ below.

Table ____.

Examples of utilization of information technology in order to enhance efficiency and productivity by the financial services industry.

Area Impacted

Description of Impact

Credit card institutions store, retrieve, and analyze vast amounts of demographic customer information enabling them to more accurately target potential markets for new products and also identify less-attractive, credit-risk customers.

This allows them to…… [Read More]

Bibliography

Brewster, Chris, Hilary Harris and Paul Sparrow. (2004). Globalizing Human Resource Management. New York: Routledge.

Cocheo, S. (2006). "Does Your Product Line Need a Trim?" ABA Banking Journal, 98(7), 7.

Das, Dilip K. (2004). Financial Globalization and the Emerging Market Economies. New York: Routledge.

Dennis, Charles and Lisa Harris. (2002). Marketing the E-Business. London: Routledge.
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Export Strategy Expansion of Highest

Words: 3137 Length: 9 Pages Document Type: Essay Paper #: 67500321

39 It was against this background that ASEAN Foreign Ministers during their retreat at Cebu in the Philippines in April 2005 decided to lay down three main criteria for the membership of the EAS: 1. Substantive relations with ASEAN; 2. Full Dialogue Partner status; and 3. Accession to the ASEAN's Treaty of Amity and Co-operation. The Foreign Minister of Singapore had stated that, India obviously qualifies on all three counts and it will be included in the first EAS. e hope that Australia and New Zealand which have not acceded to the TAC, will agree to the TAC in the coming months (Battese & Coelli, 1992-page 18). If so, we would welcome them to the EAS in Kuala Lumpur. The Minister further added that ASEAN alone will decide the future members of all subsequent summits and ?this is to ensure that ASEAN remains in the driver's seat of the EAS…… [Read More]

Works Cited

Anderson, Kym; Bernard Hoekman; and Anna Strutt. 1999. "Agriculture and the WTO: Next Steps." Revised version of a paper presented at the Second Annual Conference on Global Economic Analysis, Avernaes Conference Centre, Helnaes, Denmark, June 20-22, 1999.

Barshefsky, Charlene. 1999. Press briefing at the WTO Ministerial Conference, Seattle, WA.

Bhagwati, Jagdish. 1999. "Globalization: The Question of Appropriate Governance." Sang-don Suh prize-acceptance speech, Taegu. Republic of Korea, October 7, 1999

Birdsall, Nancy, and Robert Z. Lawrence. 1999. "Deep Integration and Trade Agreements: Good for Developing Countries?" In Kaul, Grunberg, and Stern, ed., Global Public Goods, 128-51.
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Economics of International Trade China Exploring the

Words: 1318 Length: 4 Pages Document Type: Essay Paper #: 34964020

Economics of International Trade China

Exploring the Economics of International Trade: China

"Chinese international trade has experienced rapid expansion together with its dramatic economic growth which has made the country to target the world as its market," and its expansion has only continued to show powerful growth within the international economic marketplace (Sun & Heshmati, 2010, p 1). After China was reopened to trading with the West in 1978, the country has really took off in becoming one of the world's biggest producers and exporters of a plethora of different goods. China has grown tremendously as nations like the United States have become their biggest trading partners. In response, China has helped refuel this growth with the manipulation of their currency and their heavy investment in the U.S. dollar, which ensures them a more competitive position for their exports.

For generations, China had closed itself off to trading and interacting…… [Read More]

References

American Manufacturing. (2012). China and currency manipulation. Issues. Web. Retrieved September 4, 2012 from http://americanmanufacturing.org/category/issues/china/china-and-currency-manipulation

Barboza, David. (2012). Business and economy in China. New York Times. Web. Retrieved September 4, 2012 from http://topics.nytimes.com/topics/news/international/countriesandterritories/china/business_and_economy/index.html

Congress Quarterly. (1999). The consumer culture. CQ Researcher, 9(44), 1001-1016.

Manzay, Terrance. (2010). China export industry dominates worldwide. Article Snatch. Web. Reprieved September 4, 2012 from http://www.articlesnatch.com/Article/China-Export-Industry-Dominates-Worldwide/3853472#.UEZqYKNIuHY