JÖNKÖPING INTERNATIONAL BUSINESS SCHOOL J ÖNKÖPING UNIVERSITY Foreign Exchange-Rate Exposure of Swedish Firms BACHELOR THESIS in ECONOMICS Authors: ZAHARI STOYANOV SALEEM AHMAD Head Supervisor PROFESSOR ÅKE ANDERSSON Deputy Supervisor PH.D. CANDIDATE SARA JOHANSSON Jönköping AUTUMN 2006 Bachelor Thesis in Economics Title: Foreign Exchange-Rate Exposure of Swedish Firms Authors: Zahari Stoyanov and Saleem Ahmad Tutors: Professor Åke Andersson Ph
Premium Inflation Currency Foreign exchange market
Gold Standard Versus Floating Exchange: Which is the Better Method? By: Jane Doe Eco 500 In this paper‚ I am going to discuss and compare exchange rates. The two types of exchange rates are the Gold Standard and the Floating exchange rate. First‚ I will describe exchange rates. Second‚ I will compare the two types in this dissertation. Third‚ and finally I will give my conjectures and beliefs on which I consider the better system. An exchange rate is‚ “The price of a unit of one country’s
Premium Foreign exchange market United States dollar Bretton Woods system
Chapter 10 Measuring Exposure to Exchange Rate Fluctuations Lecture Outline Is Exchange Rate Risk Relevant? Transaction Exposure Estimating “Net” Cash Flows in Each Currency Measuring the Potential Impact of the Currency Exposure Assessing Transaction Exposure Based on Value-at-Risk Economic Exposure Economic Exposure to Local Currency Appreciation Economic Exposure to Local Currency Depreciation Economic Exposure of Domestic Firms Measuring Economic Exposure Translation Exposure Does Translation
Premium United States dollar Currency Foreign exchange market
1. History The Chinese government introduced its first exchange rate policy in 1949. From 1949 to 1955‚ the policy was based on a managed currency floating system. With the establishment of a centrally planned economy‚ the Chinese government implemented a pegged policy in 1955. After the collapse of Bretton Wood¡¯s system in the early 1970s‚ China changed its monetary policy to basket currency. The weak economic environment in the country in 1985 resulted in the re-introduction of the managed currency
Premium Bretton Woods system Currency People's Republic of China
Analyse the pros and cons of hedging foreign exchange transaction exposure‚ and examine the alternatives available to a firm to manage a large and significant transaction exposure. (600 worlds) Many firms attempt to manage their currency (foreign exchange) exposures through hedging. Hedging is the taking of a position‚ acquiring either a cash flow‚ an asset‚ or a contract (e.g.‚ a forward contract) that will rise (fall) in value and offset a fall (rise) in the value of an existing position While
Premium Foreign exchange market Time Corporate finance
MANAGEMENT OF EXCHANGE RATE RISK EXPOSURE There are number of ways by which exchange rate risk exposure can be managed: - Natural Hedges - Cash Management - Adjusting of Intracompany accounts - International financing hedges and currency hedges through forward contracts‚ futures contracts‚ currency options and currency swaps NATURAL HEDGE - A hedge (risk reduction action) that occurs naturally as a result of a firm’s normal operations. For example‚ revenue received in a foreign
Premium Foreign exchange market Exchange rate Forward contract
various formats namely foreign student exchange programmes and business conventions. However‚ all forms of educational tours have one point in common‚ which is to increase the travellers’ knowledge. Therefore‚ educational tourism should undeniably be used as a form of education as it effectively facilitates learning and greatly benefits the travellers. One of the benefits of joining educational tourism is that the foreign students who involved in the exchange programme will return home as a more
Premium Student exchange program Education International student
121-133. Jarrow‚ R & Oldfield‚ G (1981) Forward contracts and futures contracts‚ Journal of Financial Economics‚ vol. 9‚ no. 4‚ pp. 373-382. Korajczyk‚ R (1985) The Pricing of Forward Contracts for Foreign Exchange‚ Journal of Political Economy‚ vol. 93‚ no. 2. MacDermott‚ R (2008) Linking Exchange Rates to Foreign Direct Investment‚ The International Trade Journal‚ vol. 22‚ no. 1‚ pp. 3-16. Worzala‚ E (1995) Currency risk and international property investments‚ Journal of Property Valuation and Investment
Premium Foreign exchange market United States dollar Currency
Why you should be an exchange student I used to think that I would travel when I was done with school. Then it occurred to me that there’s no time like the present. Going on exchanged was the best thing that I could have done. Here are a few reasons to study abroad. It’s cheaper When you travel as a student‚ it is often cheaper than traveling later in life. You can get great student discounts (get an ISIC card: an International Student Identification Card)‚ you can stay in hostels and sometimes
Premium Study abroad Sistine Chapel Travel
1. Type of basic mechanisms for exchange rates a). Free float Free floating or clean float is a type of country’s exchange rate regime where a currency’s value is allowed to fluctuate according to the foreign exchange market. Free floating exchange rate is determined by the interaction of currency supplies and demands with no government intervention. It always termed “self- correcting’ as if any differences in supply and demand‚ the exchange rate will automatically be corrected in the market
Premium Foreign exchange market Bretton Woods system Central bank