Case Study Essay – Hedging Currency Risks at AIFS The American Institute for Foreign Study (AIFS) is offering cultural exchange programs for American students and High School pupils throughout the world. Their customers have the possibility to go abroad while the AIFS organises the whole trip for them. Due to their business model the revenues of the company are denominated only in USD‚ since the offer is for American students who pay in USD. Meanwhile the costs of the company is mostly denominated
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policies”. In the early 1990s‚ however‚ Brazil became one of the last countries in the region to finally move into a regime characterized by open trade policies. Brazil quickly began working to liberalize trade‚ which included strong unilateral and regional goals. Within the next five years‚ Brazil had effectively cut tariffs substantially‚ removed non-tariff barriers (NTBs)‚ and brought about the existence of Mercosur. It was this initial momentum that allowed Brazil to achieve its status as a BRIC country
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for foreign trade and investment in China. From 2005 to 2008: From 2005‚ Chinese government started to reform the peg. The Chinese government modified its currency policy on July 21‚ 2005 and the exchange rate of the U.S. dollar against the RMB would be adjusted from 8.28 Yuan to 8.11‚ an appreciation of 2.1%. The government announced that the RMB’s exchange rate would become “adjustable‚ based on market supply and demand with reference to exchange rate movements of currencies in a basket”
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International Trade Trade Most economists believe in free trade - the movement of goods between countries in the absence of harsh restrictions placed upon this exchange. The comparative cost principle is that countries should produce whatever they can make the most cheaply. Countries will raise their living standards and income if they specialize in the production of the goods and services in which they have the highest relative productivity: the amount of output produced per unit of an input
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Ken Costa Chairman: Europe‚ Middle East and Africa UBS Investment Banking Department 2 Finsbury Avenue London EC2M 2PP Cass Business School 2 March 2006 EMBARGO UNTIL 19:30pm 2 March 2006 The Trilemma of Globalisation: Free Trade‚ Fair Trade or Fear Trade In discussing the challenges presented by today’s diverse global environment few topics can be as important as the issue of globalisation. It is at the heart of the structural change that has taken place in our generation as borders have
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ACFI 703 March 27‚ 2013 Hedging Currency Risks at AIF The American Institute of Foreign Studies (AIFS) is a company that organizes student exchange programs worldwide with two main divisions. The College Division arranges academic years and semesters or summer schools. The High School Division organizes 1-4 week educational travels for students and teachers. More than 50‚000 students participate each year in exchange programs of AIFS‚ which leads to annual revenues of around $ 200 million. AIFS
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International Trade International trade is the exchange of goods and services between countries. (“Trade Foreign Policy‚ Diplomacy and Health‚” n.d). The exact origin of international trade is hard to pinpoint but exchange of goods between nations have been conducted for thousands of years. Trade by individuals was necessitated out of the absence of self-sufficiency in human beings. In the same way‚ international trade was born out of the fact that no nation is super-abundant in every
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Chinese Immigrant Employment Barriers Canada is one of the most diverse and multicultural countries in the world. Home to 32 million people‚ Canada portrays a vast amount of cultural‚ ethnic‚ and linguistic diversity.1 Of this 32 million that reside‚ approximately 200‚000 come in a year from all over the world in search of better life and a home that provides peace and safety that they may not be able to achieve in other countries.2 Canada reflects a welcoming society that helps newcomers with social
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Customs and Trade Much of the history of international relations and trade concerns efforts to promote free trade among nations. The 17th century saw the growth of restrictive policies that later came to be known as mercantilism. The mercantilists held that economic policy should be nationalistic and should aim at securing the wealth and power of the state. Governments were led to impose price and wage controls‚ promote exports of finished goods and imports of raw materials‚ and prohibit the exports
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American Free Trade Agreement‚ one of the largest free trade areas‚ which in 1994 established a free-trade zone between the US‚ Canada‚ and Mexico. NAFTA passed with some important negotiations to protect the environment and labor standards. In 2001‚ President Bush organized the proposal of expanding NAFTA to a Free Trade Area for the Americas‚ surrounding 34 countries and 800 million people by 2005. President Obama continues to push for expansion to CAFTA known as Central America Free Trade Agreement
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