Risk Management Associated With Foreign Currencies

Executive summary Risk management associated with foreign currencies has always been an issue and a challenging task for multinational companies. A firm s economic exposure to the exchange rate is the impact on net cash flow caused by the effect incurred in the exchange rate. Recently many financial instruments are being used by these firms to avoid the financial loss that can be the outcome of risky transactions. This paper aims to present a specific strategy using currency options to reduce foreign exchange risk in order to better manage it. The research results highlight the implications of the movement in exchange rate in the context of the transaction process and present a financial instrument to effectively manage this risk. More†¦show more content†¦Changes in the valuation of currencies create a form of risk widely known as currency risk. These changes can result in unpredictable gains or losses when the profits or dividends from an investment are converted from the foreign currency into domestic currency. To offset any currency-related gains or losses Firms use hedges and especially derivatives for an increased flexibility. Derivatives are both used for hedging against an undesired event and speculation for higher profit. This paper considers risk management for multinational companies, focusing on exchange rate risk management using currency options. It takes analysis from past work of previous authors on risk management and the use of currency options in an international market. The purpose of this paper is to explain and show possible different scenarios than can occur when trading in an international market by conducting a detailed research of the exchange risk management process at a single multinational company. ABC plc, the case company is a large British multinational, trading in the commodities market. Literature review Globalization has pushed more and more companies to establish themselves as multinational corporations, and indeed it can also be said that if they do not go into these new markets, then their competitors most probably will. In their attempts to reach their goal of introducing new products and services, increase profitability in foreign markets and lead theShow MoreRelatedCompany Risk Management : Pfizer Chief Financial Officer Frank D Amelio Said That Foreign Exchange Rates1105 Words   |  5 PagesIn January 2015, Pfizer Chief Financial Officer Frank D Amelio said that foreign exchange rates will hurt 2015 sales by $2.8 billion, or 17 cents a share, if the dollar remains at its current high levels. Pfizer operates like most MNCs by most likely utilizing hedging to reduce the volatility spawned by fluctuations in foreign exchange rates. But what you really need to understand is that there are risks involved in FX hedging itself. Most analysts tend to prefer long-term hedging over short-termRead MoreCase Study : Husky Energy Inc.1472 Words   |  6 PagesTSX: Husky Energy Inc. (HSE): ïÆ'Ëœ HSE is exposed to risks related to the volatility of commodity prices, foreign exchange rates and interest rates. Furthermore, it is exposed to financial risks related to liquidity and credit and contract risks. HSE utilizes numerous derivative instruments to manage various risks including volatility in commodity prices, foreign exchange rates, and interest rate exposure. o Commodity Price Risk Management: HSE enters into commodity price contracts in order to offsetRead MoreThe Risk Associated With Currency Exposure1610 Words   |  7 PagesDear Senior Management: Our team has written this briefing note in order to inform you of the risks associated with fluctuations in exchange rates and how that risk relates to our organization; Coca-Cola Enterprises Inc. (CCE). 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The need to enter into swap agreementRead MoreSummary of Currency Translation and the Behavior of Exchange Rate1254 Words   |  5 PagesSUMMARY OF CURRENCY TRANSLATION AND THE BEHAVIOR OF EXCHANGE RATE Journal written by Robert G.Rulland from Northeastern University and Timothy S.Dauprik from Univesity of South Carolina discussed about the foreign currency translation and behaviour of exchange rate. Consequently, the first controversy is which translation method provides the most meaningful translation gains and losses, for example which method provides the most reasonable measure of the foreign entitys exposure to movementsRead MoreThe Exploration Of Apples Historical Background1115 Words   |  5 Pagesbackground will examine the nature of business activities that will deem relevant. The products and services Apple provides to businesses and consumers; and the geographical exposure from where the products are produced. 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With such vast amounts of money floating in and out of global markets [as in this example], intermingled among numerous currencies, participating governments must have some way of protecting their investments and/or transactions. This paper seeks to discuss through examples, the impact of the use of hard and soft currencies in aiding in the protection of those investments and/or transactions. Hard Currency According to InvestopediaRead MoreThe Walt Disney Company Analysis873 Words   |  4 Pagesyear. (Walt disney co, 2014) Enterprise Risk Management Risk management is a way for firms to grow and create value. Enterprise risk management programs give organizations the tools they need to make quicker decisions with confidence. Steven Hunt, vice president of research at Forrester Research states, â€Å"It’s like driving a car: You can only go fast if you know you have good brakes.† (Buchanan, 2004) â€Å"As organizations develop their risk management processes, they can use those processes toRead MoreHistory Of Nike Inc. ( Nke )1709 Words   |  7 Pagesits international markets. Nike products are available via e-commerce websites in more than 40 countries. Major Source of Foreign Exposure Nike recognizes that fluctuations in currency exchange rates could result in higher costs, overstated revenues and decreased profit margins. In a September 2016 SWOT analysis, Global Data lists foreign exchange risk as a major potential threat to Nike (Global Data, 2016). Most Nike products are produced and sold outside of the United States. In recent

The Black Death Of The Middle Ages - 1825 Words

As the middle ages came to a close, political theologians set forth a series of political ideologies that would help shape modern day democracy. The Black Death greatly affected the beliefs of the power in Catholic Church. With seemingly randomly mass death of the young and old, the peasant class began to revolt. While unrest occurred throughout Western Europe events like the conciliar movement called into question the emerging conceptions of limitations on rulers’ power. Theologian including John Wycliffe, William of Ockham, and Christine de Pizan all captured the number political ideas of the time. The events that defined this period in history helped shape what we have come to know and trust in our government. During the time the Black Death swept Western Europe, questions of who’s authority was supreme to the land arouse. â€Å"Disaffection with the church, or the thought that it might be not be true or the only way to salvation, spread in all ranks of society. It was not only kings who disputed the claims of the clergy. Obscure parish priests, close to the distress of ordinary people, began to doubt the power of their ecclesiastical superiors† (p. 47 of â€Å"Disasters of the Fourteenth Century† Handout). Theologians across Europe set forth ideals for a church to hold councils to in order to constitute the ideals of the entire Christian population. â€Å"John of Paris in his (On Royal and Papal Power) agreed that a general council could depose the pope on the grounds that itShow MoreRelatedThe Black Death And The Middle Ages879 Words   |  4 PagesThe Middle Ages lasted from the 5th century to the 15th century. Another name for this time period was the â€Å"Dark Ages† because many important records from this time was not able to be saved or they were lost. Many events that occurred in this time drastically affect the culture of the citizens of Europe. The Middle Ages affected the European World socially, politically, and religion wise. The lack of morale in the country called for a lot of changes to occur. The Black Death was one of the most drasticRead MoreThe Black Death And Its Effects On The Middle Ages1534 Words   |  7 PagesThe Black Death â€Å"Ring around the rosy, a pocketful of posies, ashes †¦ ashes, we all fall down.† A familiar nursery rhyme that children have recited as a harmless play song for generations. Ironically, it refers to one of Europe s most devastating diseases. The first recorded case of the plague was in China in 224 B.C.E. But the most significant outbreak was in Europe in the mid-fourteenth century. Over a five-year period from 1347 to 1352. The Black Death had a great impact of change duringRead MoreThe Cause Of The Black Death In The Middle Ages924 Words   |  4 PagesPicture a village near the trade route in Europe during the middle ages – a working class family is sharing a meal when a knock on the door interrupts and is greeted by a man covered in sores doing what was later called the dance of death. The visitor was taken in by the family and died in the night. When the children awoke the next morning, they felt feverish and would eventually wind up in the same pred icament as their visitor. This sequence repeats itself as villages are eliminated to this curiousRead MoreBubonic Plague766 Words   |  4 Pagesplague spread rapidly causing outbreaks and identifying the need for modern science to deal with epidemics. II. Topic Sentence: The bubonic plague or otherwise known as the black plague spread extremely fast and there were many symptoms of the disease. A. There are many initial symptoms and symptoms before death of the black plague. â€Å"The Bubonic Plague† E medicine. 24 December 2004. http://www.emedicine.com/emerg/topic428.htm , Velendzas, Demetres 1. Many initial symptoms were swollen lymph nodesRead More The Middle Ages or the Dark Ages Essay786 Words   |  4 Pages The Middle Ages Imagine having to bury your own children. How awful would that be? The Middle Ages were a brutal time that included the bubonic plague, many wars and other horrible things. This period is considered to be one of religion and the Catholic Church, but this was overshadowed by chaos and confusion. Although the Middle Ages is often known as the age of faith, a more appropriate title for the time period would be The Dark Ages because of the black death, wars and the collapse of governmentRead MoreThe Black Death, Dulce N. Parra1533 Words   |  7 Pages The Black Death Dulce N. Parra Period 3 â€Æ' Through the years of 1347 and 1350, a terrible plague took over Europe. In those three years, the plague killed approximately 25 million people or one-third of Europe’s population. Not one family did not lose a family member to the plague. About one hundred people died daily, and mostly of them were never buried in a proper manner. Their bodies scattered the street of the city unclaimed. This plague was the Black Death, the most deadly natural disasterRead MoreThe Economic, Political, and Social Effects of the Black Death1268 Words   |  6 Pagesknown as the Black Death. This Black Death was an ecological disaster on a global scale. The effects of the plague on human and certain animal populations from East Asia to as far west as Greenland were catastrophic. All facets of society, from peasant to king were affected; no one was safe. All of society was affected; nothing would ever be the same. Thus, there were many economic, social, and political effects of the Black Death. Before one can understand the effects of the Black Death, one mustRead MoreLooking Back at the Middle Ages1485 Words   |  6 Pages The Middle Ages where a significant time period with important political, social, religious and economic events, which have shaped history since that time, and the world today. One such event that has affected the politics of the Middle Ages and now was the signing of the Magna Carta. Secondly, was the Black Death (also known as the Bubonic Plague that affected the religious, social, and economic aspects. An event that affected the religious and economic aspects were the Crusades. There wasRead MoreEssay on Disease and Treatment in the Middle Ages1231 Words   |  5 Pagesand Treatment in the Middle Ages The Middle Ages were tough times when it came to disease and medicine. There were numerous types of sickness and disease that flooded Europe during the Middle Ages. Not helping the situation, the medicinal knowledge of the people of Europe of the time was not up to par. Some of the diseases and illness that were running rampant during these times were pneumonia, leprosy, and the plague. The middle ages were a time of great suffering and death because of the abundantRead MoreThe Author of the Black Death: John Aberth Essay828 Words   |  4 PagesUniversity of Leeds. He is the author of five books, whose main focus is the effects of the Black Death in the later Middle Ages, including The First Horsemen: Disease in Human History, The Black Death: The Great Mortality of 1348-1350, and A Knight at the Movies: Medieval History on Film. Published in 2001, From the Brink of the Apocalypse: Confronting Famine, Ware, Plague, and Death in the Later Middle Ages, is a mid-length, non-fiction, bibliographical novel. Aberth writes both in his lively, readable

Exclusive Online Store for Kids Essay Sample free essay sample

Get downing up an online shop entirely for childs has first-class concern potency. Kuwait already has a overplus of online shops covering with food markets. takeout nutrient. corsage flowers. electronic consumer durable goodss. computing machines. interior decorator vesture and accoutrements. Hence. get downing a new web site to vie in concentrated sections is non easy. It would non merely take a batch of clip and resources. but besides involves a higher hazard of the concern neglecting. Thus. constructing a kids’ online shop lowers risk since there is virtually no competition in the section. The web site can offer toys harmonizing to the children’s age group and involvements. It can sell playthings like dolls. board games. constructing sets. bike and skateboards. Another subdivision would offer stationery points such as pencils. pens. colourising kits. clay kits. picture tools and crayons which would assist heighten creativeness of the childs. The web site can besides offer video game consoles and game rubrics to maintain childs entertained. By supplying comprehensive inside informations about the games. parents can do informed picks to purchase games appropriate for their kids. It can besides hold a separate subdivision for books such cartoon strips. faery narratives. quiz books. educational books every bit good as synergistic CD-ROMs to further larning. Equally far as vesture and accoutrements are concerned. the web site can hold a separate subdivision for male childs and misss. The online store could besides cover with rare cocoas and bite points which are rarely found in neighborhood supermarkets. Target Audience The web site would chiefly appeal to parents with busy work agendas. It could assist them pass clip with childs. while besides salvaging the clip and resources spent on sing a brick-and-mortar childs store. The points sold would be sold at highly sensible monetary values. The web site should besides do it clear that parents or an adult’s presence is perfectly indispensable to do while shopping online. To carry through this. the web site has to take appropriate steps to verify that the individual doing the purchase is adult. This measure would guarantee that the company maintains certain ethical criterions. by non leting childs to fling money without parent’s consent. Relatives or household friends remaining overseas can besides direct gifts to childs on memorable occasions. thereby assisting to bridge the geographical divide. The goods purchased online could be delivered for free. if the bringing reference is within sensible propinquity. Website Design The web site should be designed in such a manner that is appealing to childs every bit good as easy to utilize for the parents. All the inside informations refering to the playthings would be given in item and live chat support would besides be provided to turn to any concerns. All the merchandises sold on the web site would hold high-resolution ocular images and a nexus to the product’s maker web site every bit good. Integrating 3D mold of merchandises can assist clients to acquire a better feel of the merchandise before purchasing it. The web site can besides hold an synergistic subdivision with games and competitions offering attractive awards to victors. thereby encouraging childs to see the web site more frequently. Promoting clients to compose reappraisals about the merchandises they bought would assist other clients understand the merchandise better and do wiser picks. The chief end of the web site is to function as a platform to pass choice household clip. by easing a hassle-free shopping experience for childs every bit good parents. The web site should besides hold a concrete privateness policy and guarantee the highest security criterions to gain client trust and regard. Repeat concern can be encouraged by presenting customer-loyalty plans. Customer interaction and feedback should be encouraged and taken earnestly to heighten the shopping experience. so as to do it every bit near as possible to real-world shopping. This can be accomplished by integrating a treatment forum in the web site for clients to interchange thoughts and clear up their questions among other clients. Ad Ad on kids’ web sites such as bet oning web sites. societal networking portals and of children’s web logs would convey in traffic from the right demographic. Since the web site is chiefly providing to clients in Kuwait. it would do sense to publicize in kids’ column in local newspapers and particularly children’s cartoon strips. During the launch of the web site. freebees can be offered to a limited figure of visitants for registering. This would make a bombilation on the Internet and thereby drive more clients to see the web site. The store could besides spouse with several local trade names to make promotional offers and price reductions. which could promote people to take the web site over a conventional plaything store. Besides. publicizing the web site with a â€Å"No inquiries asked Return-policy† within a stipulated clip period besides helps to derive client assurance. This helps to pull clients who are normally loath to shop online to derive assurance in purchasing merchandises on the web site. Viva-voce advertisement has ever been an effectual manner of advertisement. Hence. handling clients politely and doing their shopping experience a memorable unfastened would guarantee that clients talk to other people about it. thereby pulling new clients. Although partnering with a kid’s Television channel involves a batch of investing. it can besides bring forth enormous consequences. Hence. this measure can be implemented at a ulterior phase. one time the concern additions some grade of stableness. A portion of the net incomes could besides be contributed to assist kids in developing states. thereby carry throughing societal duties of an organisation. This would besides assist in bettering the trade name image of the web site and in bend attract more clients.

The Upward Battle free essay sample

I’m a dictator. Ask any of the paper’s staff members about my tactics, and they’ll probably compare me to Mussolini himself. O.K., I’m too critical. I refused to ask for help. I thought I was the Superwoman of high school journalism. And to say the least, I wasn’t. The newspaper adviser of 13 years left after my sophomore year. With his experience in journalism, he was able to advise the editors through tough budget problems, tell them how to handle power struggles, edit copy and bring new ideas to the table. He participated in regional workshops and was an active scholastic media leader in the state. He was a lively member of the staff. We were lucky. I was the first editor in the paper’s history who would not have him to hold my hand, and I thought I could handle it. I would get more students involved in the paper. We will write a custom essay sample on The Upward Battle or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page People would fight for coverage, and readers would make checking the Intermission website a daily activity. I swore I would be the editor who would change the reputation of the paper. Well, sometimes your expectations don’t line up with reality. I failed my paper in more ways than one during my junior year: For one, we never felt united. The designers and photographers were in a completely different building than the writers and copy editors. Classes went on where none of the writers saw my face. I went in with the mentality that I was the â€Å"Almighty Editor-in-Chief† who the staff would automatically respect, fear, and obey. Instead, they treated me as a parent: agreeing to complete the task, but the moment I left the room, they went back to their naps. I had to hold my staff’s hand like they were in kindergarten. Secondly, I never communicated with my adviser. With multiple e-mails sent before the school year even started, I came off too strong. I expected him to know everything about journalism. I expected him to have past experience in the field and to be as eager I was to get started. I quickly realized how optimistic I had been. I never took the time to show him the ropes. He was left behind, and to this day, he still thinks it was his fault. The apology note he wrote in my yearbook does not lie. And lastly, I was awards-driven. My previous adviser always mentioned one editor who set the record for the most papers published in a year, who won the paper numerous awards at our state competitions, and who was an alternate for North Carolina High School Journalist of the Year. I wanted to be her, but I focused on the wrong things. My eyes were only on the prize, and I forgot about the steps to getting there. Impatience, selfishness, and overconfidence are the characteristics of the dictator that once ruled over the Intermission newspaper. A new era of democracy has begun. Now, I’m a democratic leader.

Case Study 4 Culture Clash In Boardroom Example

Case Study 4 Culture Clash In Boardroom Example Case Study 4 Culture Clash In Boardroom – Case Study Example Case Study 4 Culture Clash in Boardroom Identify the most important facts surrounding the case. The case of whether the German-Chinese joint venture should follow the ethical rules of the parent company or the country of operation presents a decision dilemma to the management. The most important facts that surround this case include the socio-cultural differences that multinational companies experience. In this case, the German-Chinese joint venture has its headquarters in Germany and this means that its entire operation management principles and business practices are traditionally Europe. On the other hand, China hosts its subsidiary and offers a better business prospects. The challenge is that in China it is operating in a different cultural environment which is likely to contravene its ethical standards of business practices.Identify the key issue or issues.The key issue in this case is adherence to ethical standards of the company versus the need to accept the bribe culture in C hina to realize sales. Mr.Liu Peijin faces a difficult decision to make since the customer insists on 1% commission as a reward to complete the negotiation and finish the deal. This is the local culture in china but is against the ethical standards of the firm.Specify alternative courses of action.The causes of actions possible in this case are to compromise the ethical standard of the company, give the commission to the customer and gain in huge sales. An alternative cause of action is to withdraw from the deal by rejecting the 1% commission demand thereby holding on the ethical principles of Almond China.Evaluate each course of action.Offering a 1% commission will compromise the ethical principles of the multinational which will affect its ability to negotiate future deals on allegations of corruption and lacking integrity. Sticking to the company’s ethical principles and rejecting 1% commission demand will cost the company a huge sale- 30 million Yuan.Recommend the best co urse of action.The long run survival of the firm is primary and this makes it important to have clean hand in its transactions. Since it is in another country with better business potential, it would be advisable to protect its public image by adhering to its ethical standards. Tis has long term benefits in positive public image of Almond’s as a compromise on its ethics or safety standards may affect its ability to secure contracts in the future.Work CitedKatherine Xin and Wang Haijie Should a German-Chinese joint venture follow the ethical rules of the parent company or the country of operation? Culture Clash in the Boardroom.2011

Comparison of U.S. & Other Health System Essay Example | Topics and Well Written Essays - 750 words

Comparison of U.S. & Other Health System - Essay Example However higher costs does not mean better quality of life, health statistics in Spain show higher life expectancies (82.2 years), lower mortality rates (10.9/1000), and overall lower incidences of population major diseases (diabetes:9.0%, cardiovascular diseases: 23.15%, obesity: 23.95%) compared to US [life expectancies (78.6 years) mortality rates (13.9/1000), major diseases (diabetes:10.85%, cardiovascular diseases: 15.6%, obesity: 31.7% ) (National Center for Health Statistics, 2013; World Health Organization, WHO, 2012). Differences come from lifestyle habits, the Spanish have an active lifestyle and Mediterranean diet, and the US a sedentary lifestyle coupled with unbalanced diet (Borkan, et al., 2010; The Department for Professional Employees, DPE, 2013; National Center for Health Statistics, 2013; WHO, 2012). Health Care Financing: Comparison between US and Spain The US has hybrid healthcare financing: government medical subsidy is combined with private or group insurance for payments: private funding ( insurance or individual’s out-of-pocket payments) amount up to 50% of the total health care spending, with the rest from federal (38%) and local or state funds (12%) (DPE, 2013). For Spain, after healthcare reform financing is also shared, but the government pays up to 74% of the expenses, the rest is paid by individuals or employers (Legido-Quigley, et al., 2013). Spanish healthcare relies more heavily on taxes than US healthcare, contributing to lower healthcare costs per person compared with the latter (WHO, 2012). Health Care Administration: Comparison between US and Spain The US principal agency in healthcare provision is the Department of Health and Human Services (HHS), which works with other agencies (e.g. Agency for Healthcare Research and Quality, Centers for Disease Control and Prevention, etc.) to improve the population’s health through research and development, establishment of quality standards, among others (National Center f or Health Statistics, 2013). In Spain the Spanish National Institute of Health (Instituto Nacional de Salud, INSALUD) similarly functions as the HHS in providing the public with quality health services, however unlike HHS it is decentralized and delegates power over regional health communities (Borkan, et al., 2010). Health Care Personnel and Facilities: Comparison between US and Spain Only around one-fifths of the healthcare facilities in the US are government-owned and the rest are private institutions, accounting for high healthcare costs per individual (DPE, 2013). A low physician-to-patient ratio of 24 physicians per 10,000 people promotes high healthcare costs but less quality services (Holtz, 2008; National Center for Health Statistics, 2013). In Spain, healthcare facilities are mostly government-owned and subsidized, and physicians and nurses are salaried, which reduce additional costs per individual (Borkan, et al., 2010). Also, services are better due to a higher physician -to-patient ratio, 39 per 10,000 persons (WHO, 2012). Access and Inequality Issues: Comparison between US and Spain US ranks first in terms of health care responsiveness due to its state-of-the-art health care delivery system, which contributes to an increase in preventable deaths (Holtz, 2008; WHO, 2012). Spain’

The Valley Winery Essay Example | Topics and Well Written Essays - 500 words

The Valley Winery - Essay Example Employee turnovers have been described as one of the major challenges that face any organization that is bent on growing. This is because turnover puts so much challenging in place for management to solve and the process of solving these problems takes the attention of management from pursuing other beneficial ventures for the organization’s growth (Sigma Assessment Systems, 2012). To this extent, the problem that Pat Waller faces cannot be underestimated in any logical sense. Causes of the Problem There exist a number of causes of the present problem at Valley Winery. However, two of these would be outlined for the present purpose. In the first place, much blame would be given to the characteristics of the job that the sales representatives are supposed to undertake. According to Sigma Assessment Systems (2012), not all jobs have the same levels of intrinsic attraction and that â€Å"a job's attractiveness will be affected by many characteristics, including its repetitiveness, challenge, danger, perceived importance.† There is no denying the fact that most sales representatives take up their jobs with very low levels of perceived importance as they assume those jobs to be stepping stones to get hooked on to other kinds of jobs. Moreover, the job does not guarantee repetitiveness and poses a number of dangers to the representatives. This could be the major cause of the problem. The second cause to be discussed could somehow also have served as the solution to the problem if it was implemented earlier.