FOREIGN EXCHANGE RATE SENSITIVITY AND STOCK PRICE : ESTIMATING ECONOMIC EXPOSURE OF TURKISH COMPANIES INTRODUCTION Variability in exchange rate is a major source of macroeconomic uncertainity affecting firms. After the 1970 ’s‚ the rapid expansion in international trade and adoption of floating exchange rate regimes by many countries led to increase exchange rate volatility. The firm ’s exposure to exchange rate risk increased. In the literature three types of exposure under floating exchange
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capital as at March 2002 was 397 billion yen. Toyota is exposed to the fluctuation in foreign currency exchange as it operates mainly in America‚ Continental Europe and Britain. It is therefore affected by the fluctuation in the value of the US dollar‚ the Euro and to a lesser extent the British pound. Toyota ’s consolidated financial statements‚ which are presented in the Japanese yen‚ are affected by the foreign exchange fluctuation‚ as all the amounts in the various countries ’ currencies have to
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to preserve the best interests of America. Because of these two controversial foreign policy making pillars‚ American foreign policy made fatal mistakes that changed the world throughout at least the last two centuries. 2- Statement of the purpose 2.1.1. Background of the study The topic of this research proposal addresses the quarrel between the role of religion versus the role of interests in shaping the US foreign policy throughout its history since isolationism up to the 21st century whether
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Problems Associated with Foreign Aid Picture One year after the release of The End of Poverty‚ New York University economist William Easterly released a book entitled White Man’s Burden which criticized Jeffrey Sachs’ promotion of more aid to Africa. Easterly contended that "Sachs’ anti-poverty prescriptions rest heavily on the kindness of some pretty dysfunctional regimes"‚ arguing that large amounts of international aid are generally wasted or embezzled by corrupt governments. For example‚ he points
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Emerging Issues in India- Foreign Direct Investment- An overview on Overseas Investment | | Liberalisation in overseas investment policy‚ in order to improve exports and strengthen economic linkages with foreign countries‚ has intensified India’s participation on the international arena.Overseas InvestmentsAs per the recent RBI data‚ Indian companies carried out overseas investment transactions that resulted in outward FDI. Some like SanmarGroup International committed US$ 67.65 million
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import-intensive industries show a positive association with the exchange rate of rupee. The Vector Autoregression (VAR) model shows one-way causality running from stock prices to exchange rate. This suggests that the portfolio rebalancing activities of Foreign Institutional Investors (FIIs) have a more important role in the dynamic interaction between stock prices and exchange rate. Introduction The implementation of flexible exchange rate regime‚ full convertibility of rupee in current account‚ and a
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Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures Prepared By: Danial Wahaj Khan EXECUTIVE SUMMARY: This report is based on a practical scenario solution of General motors. The report addresses the problem given in scenario which is the change in policy of hedging with detailed reasoning. The report then looks at the different available hedging instruments to the firm. Profitability of both instruments has been compared and lowest cost option was
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that a historian has argued that American foreign policy between 1890 and 1933 can be best explained as “an effort to expand its overseas markets.” I would argue that while the main driving force behind our foreign policy at the time may have been economic‚ a “dark side” to this ordeal can be found with a little research. To a degree‚ the unnamed historian is correct in the fact that our foreign policy had much to do with opening up trade with foreign countries. For example‚ Taft was known for
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Disasters and Foreign Direct Investment M onica Escaleras and Charles A. Register The aim of this paper is to address the linkage between foreign direct investment (FDI) flows and the number of natural disasters. By using the data of 94 countries in the period of 1984 to 2004 and applying a variety of empirical tests‚ the result appears that natural hazards have significantly negative effects on FDI of countries. A. Economic Effects of Natural Disasters and The Determinants of Foreign Direct Investment
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Testing: The Key Results by Allan Kearns1 ABSTRACT The CBFSAI’s overall assessment of the resilience of the banking sector to adverse shocks relies on both an analysis of the current health of the sector as well as stress testing the system. A stress test is generally an investigation whereby a bank’s or group of banks’ current financial health is stressed by adverse shocks and the impact of these shocks on the institutions’ financial position is quantified. This paper outlines the key results from
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