business environment‚ the foreign exchange market is playing a more and more important role. This essay firstly discusses the valuation of Chinese Yuan and the global economic balance with reference to the case “Chinese Yuan and Economic Balance” (Question 1). Secondly‚ it continues to focus on the situation of Japanese Yen‚ based on the article “The Yen and Exports: Japan’s Continued Recovery” (Question 2). Finally‚ it discusses three questions about foreign exchange calculations. (Question 3)
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Foreign exchange market in India is relatively very a. Big b. Small c. Medium d. None of the above 2. Balance of payment is a systematic record of all _______ during a given period of time. a. Political transactions b. Social transactions c. Economic transactions d. None of the above 3. Merchandise trade balance‚ services balance & balance on unilateral transfer are the part of ________ account a. Current account b. Capital account c. Official account d. None of the above 4. Interest rate swaps can
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within the country. This could potentially halt their production. It may create opportunity to expand or increase local competitions. Corona expanded internationally‚ especially USA‚ with no local production this create the risk of foreign currency exchange rate fluctuation when economic changes. The society may change their preference and turned into health conscious consumer‚ this would significantly impact the sales of all alcohol company. Technology will help Corona in their marketing campaign‚ this
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fundamental relationships between economic variables and exchange rate. Fixed exchange rates: The forecasting is based on indicators of sustainability such as current account deficits or surpluses‚ relative inflation rates and black market exchange rates. Floating exchange rates: The forecasting is based on factors that could influence macro economy such as monetary policies and exchange rate policies. B. Technical Analysis: Forecast future exchange rate by finding behavioral patterns or correlations
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around the world. Because of its popularity‚ the Big Mac allows economists to make (admittedly unscientific) comparisons of exchange rates and relative prices in countries around the globe. This Economics Minute looks at how the "Big Mac Index" helps explain variation in exchange rates and prices. In 1972‚ just before the collapse of the Bretton–Woods system of fixed exchange rates‚ the US dollar cost about 40 British pence. By 1985‚ the dollar had appreciated to 90 pence‚ but by the end of December
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questions 1. Why should the required rate of return for a capital budgeting problem be project specific? Doesn’t the firm just have to satisfy an overall cost-of-capital requirement? Answer: The required rate of return for a capital budgeting problem is project specific because the firm is viewed as a portfolio of projects owned by the shareholders. It is the shareholder’s perspective that matters‚ and it is their opportunity cost that gives the required rate of return for a project. The question
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you define economic exposure to exchange risk? Answer: Economic exposure can be defined as the possibility that the firm’s cash flows and thus its market value may be affected by the unexpected exchange rate changes. 2. Explain the following statement: “Exposure is the regression coefficient.” Answer: Exposure to currency risk can be appropriately measured by the sensitivity of the firm’s future cash flows and the market value to random changes in exchange rates. Statistically‚ this sensitivity
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Formalities Export Procedure‚ Issuance and Disposal of EXP Form‚ Negotiation of Export Bill‚ Collection of Export Bill‚ Handling of Discrepant Documents under Documentary Credit‚ Dispute Settlement‚ Exchange Rate used in Negotiation and Collection‚ Realization of Export Proceeds‚ Non realization of Export Proceeds within 4 Months‚ Export without LC. Export means outflow of Goods and/or Services produced in one Country‚ which purchase
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The expected spot rate was decreased and depreciation of 4.05% percent. ii. The higher the inflation in United States will lead to a higher price of U.S. products. Therefore‚ U.S. consumers will buy more Canadian goods. The demand for Canadian dollars will appreciate and increase in U.S. because U.S. inflation rate become high. The supply of Canadian dollars for sale should decrease‚ because the values of Canadian
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| Assignment Cover Sheet | Course Title: | | Section: | | Program: | | Assignment No. | | Student’s Complete Name: | | Student’s Complete ID: | | Date Submitted: | | Case 3.1 Foreign Exchange Trading at Baldwin Enterprises 1. Spread Sheet Model CURRENCY | AMOUNT | CONSTRAINTS | TRADING PLAN | USD | 4055972.522 | 4055973 | ≥ | 250000 | 111261.72087258300 | EUR | 8000000 | 7779200 | ≥ | 250000 | | GBP | 160328.3525 | 250000 | ≥ | 250000 | | HKD | 1951295
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