1. Exchange rate point of view. From the story‚ Tiffany bought the property and inventory from Japan Mitsukosi. It will expose to the exchange rate translation risk. So it should do the risk management. The analysis structure will be that: (1) Define the risk source: the exchange rate flucturation‚ the cash flows of different currencies from asset change‚ account receivable and account payable. (2) Define the scope of risk control: the natural currency settlement hedging‚ the overflow exchange
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Tiffany & Co. Case Study After Tiffany & Co. made the new retiling agreement with Mitsukoshi Ltd in July 1993‚ Tiffany & Co Japan. Inc started to be responsible to manage the operations of 29 boutiques in Japan. Tiffany will now face both opportunities and risks. Prior to the new agreement‚ the wholesale transactions were dominated entirely in dollars‚ so yen/dollar exchange rate fluctuations were not the reason of Tiffany’s cash flow volatility‚ and Mitsukoshi bore the exchange risk between the
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The Nile River is made up of two tributaries. The two tributaries are the White Nile‚ and the Blue Nile. These two rivers connect together in the Sudan and then continue on their long and large journey. Although these are its two main sources‚ many other smaller rivers flow into it as well. The Nile River is known as the longest river in the world. The river is about 4‚132 miles long and 1‚107‚000 square-miles deep. The Nile is located in Northern Africa and runs through Egypt‚ Ethiopia
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Phuong Nguyen Cheryl Thompson BBB4M0 June‚ 10‚ 2012 Diamonds There are many different kinds of valuable gem in the world; however‚ diamonds is the most precious and favorite stone all the time. As the hardest known naturally material‚ diamond can be used to polish‚ cut and become a jewelery. Consumer claim that diamond is forever‚ that’s why diamond wedding ring represent for the endless love. This is a reason why diamond always become a “hot topic” in the market all over the world.
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“A diamond‚ is the symbol for love‚ commitment‚ and a joyful new beginning‚” said the TV commercial. Many of the world’s diamonds‚ are mined using practices that exploit workers‚ children‚ and communities. A million diamond diggers in Africa earn less than a dollar a day. Miners are dying in accidents‚ child labor is widespread‚ and corrupt leaders are depriving mining communities of funds badly needed for economic development. In extreme cases‚ diamond mining can cause entire ecosystems to
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Tiffany & Company Case Analysis I. Statement of Issue Should Tiffany hedge against translation risk from their Japanese subsidiary? II. Relevant Facts • Establishment of Tiffany-Japan with new responsibility of setting yen prices and managing currency risk. • Eurodollar 3-month forward rate 3.25% Euroyen 3-month forward rate 3.1875 • Yen/Dollar spot rate ¥106.3500 3-months forward ¥106.3300 • 94 SEP call price 1.99 (100ths of a cent per yen‚ ¥6‚250‚000/contract) • 93.5 SEP put price
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The Nile is the longest river in the world which is located in Africa. It spans itself from Lake Victoria in east central Africa to Egypt. It flows generally north through Uganda‚ Sudan‚ and Egypt to the Mediterranean Sea‚ for an approximate distance of 5‚584 km From its remotest headstream‚ the Luvironza River in Burundi‚ the river is 6‚695 km long. The river basin has an area of about 3‚350‚000 sq km. Its average discharge is 3.1 million litres per second. The lower course of the river in Egypt
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River of Africa Surrounding landforms and availability of resources affect civilizations. The survival of countries in Africa relies on the Nile River. Physical landforms‚ climatic agriculture as well as ancient cultures and advances contribute to the effective utilization of the Nile. Various subdivisions and landforms along the coast of the river present tremendous opportunities for the Africans. Over time‚ the control of water intake and the substantial contribution of different climates create
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Case: Tiffany & Co. (1) What (if any) are the problems confronting the company? Because of Tiffany’s large exposure in Japan‚ it is severely adversely affected by the yen/dollar exchange rate fluctuation and needs to determine the best way to hedge against this risk. (2) How did the problems arise? Tiffany was assuming control of its operations in Japan‚ which had previously been managed entirely by Mitsukoshi. With this greater control over its sales in Japan came much increased exposure
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Nile Perch in Lake Victoria By Andrew .m Introduction Lake Victoria is largest lake in Africa‚ seventh largest in the world by volume. And second largest freshwater lake in the world. The lake is surrounded by three different country’s Tanzania‚ Uganda and Kenya. Figure 1 depicts Lake Victoria and the surrounding countries. All three countries share the lake and its resources‚ but one of the biggest issues is that the governing laws involving the resources and the lake regulations
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