...FIN 403 Week 3 Learning Team Assignment Foreign Exchange and Derivatives Market Paper To Buy This material Click below link http://www.uoptutors.com/FIN-403/FIN-403-Week-3-Learning-Team-Assignment-Foreign-Exchange-and-Derivatives-Market-Paper FIN 403 Week 3 Learning Team Assignment Foreign Exchange and Derivatives Market Paper Resource: Investment Decision Selection Paper Prepare a 1,750-2,450-word paper. Analyze the impact of the foreign exchange and derivatives markets on your organization and countries in which the organization is considering expansion. Describe the impact of exchange rate convertibility, bid-ask spreads, real exchange rates, and the interest rate parity on the relative investment attractiveness of the countries in your scenario. Answer the following questions in your paper: Does purchasing power parity hold? What is its significance? What happened to the value of the real exchange rate over time? What is the significance of this change in value? What are bid-ask spreads for each currency? Include your calculations. What are implications of the absence or presence of a forward exchange market? Does interest rate parity hold? What is its significance? What international arbitrage opportunities exist in your organization? How may the organization take advantage of these for profit? Cite data sources you used for calculations. If you used an electronic source, include the URL. If you used a print source, attach a copy to your paper. Format your...
Words: 260 - Pages: 2
...ECO 410 WK 8 ASSIGNMENT 2 FOREIGN EXCHANGE EXPOSURE To purchase this visit here: http://www.activitymode.com/product/eco-410-wk-8-assignment-2-foreign-exchange-exposure/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO 410 WK 8 ASSIGNMENT 2 FOREIGN EXCHANGE EXPOSURE ECO 410 WK 8 Assignment 2 - Foreign Exchange Exposure Activity mode aims to provide quality study notes and tutorials to the students of ECO 410 WK 8 Assignment 2 Foreign Exchange Exposure in order to ace their studies. ECO 410 WK 8 ASSIGNMENT 2 FOREIGN EXCHANGE EXPOSURE To purchase this visit here: http://www.activitymode.com/product/eco-410-wk-8-assignment-2-foreign-exchange-exposure/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO 410 WK 8 ASSIGNMENT 2 FOREIGN EXCHANGE EXPOSURE ECO 410 WK 8 Assignment 2 - Foreign Exchange Exposure Activity mode aims to provide quality study notes and tutorials to the students of ECO 410 WK 8 Assignment 2 Foreign Exchange Exposure in order to ace their studies. ECO 410 WK 8 ASSIGNMENT 2 FOREIGN EXCHANGE EXPOSURE To purchase this visit here: http://www.activitymode.com/product/eco-410-wk-8-assignment-2-foreign-exchange-exposure/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO 410 WK 8 ASSIGNMENT 2 FOREIGN EXCHANGE EXPOSURE ECO 410 WK 8 Assignment 2 - Foreign Exchange Exposure Activity mode aims to provide quality study notes and tutorials to the students of ECO 410 WK 8 Assignment 2 Foreign Exchange Exposure in order to ace their studies. ECO 410 WK 8...
Words: 1054 - Pages: 5
...University of Puget Sound School of Business and Leadership BUS 435 International Finance Professor Alva Wright Butcher Tues & Thurs 12:30-13:50 McIntyre 107 Spring Semester 2013 Office: McIntyre 111 I Office Hours: Phone: 253-879-3349 Tues and Thurs 2:00-3:00 FAX: 253-879-3156 Wed 9:30-10:30 And by appointment Note that I am always willing to schedule additional office hours by appointment. I check email frequently, so that is also a good way to communicate. If I do not respond to your email message, that means I did not receive it. Please send it again. Email: butcher@ups.edu Required Course Materials Text: Madura, International Financial Management, Abridged 10th Edition, South-Western, 2011 Book: Lewis Michael, Boomerang: Travels in the New Third World, Norton, 2011 Calculator: A calculator is required. A financial calculator would be preferable, as it would have functions for bond valuation, net present valuation (NPV), internal rate of return (IRR), present value (PV), and future value (FV). A suitable calculator, the HP10-B, is available in the bookstore for about $30. Harvard Business School Cases https://cb.hbsp.harvard.edu/cbmp/access/17920074 The above is the URL for Harvard Business School so that you can obtain discounted student pricing for the cases: Group Ariel S.S.: Parity Conditions and Cross-Border...
Words: 4483 - Pages: 18
...Finance COURSE DESCRIPTION Presents international financial tools, applications, and concepts used in formulating effective financial management strategies. Examines fundamental international financial relationships and transactions among firms, foreign exchange rate determination and forecasting, foreign exchange risk and exposure, balance of payment accounting, and evolution of the international monetary system. Analyzes special topics such as working capital management strategies, capital budgeting, cost of capital, and optimal capital structure in the context of international operations. INSTRUCTIONAL MATERIALS Required Resources Madura, J. (2012). International financial management (11th ed.). Mason, OH: South-Western, Cengage Learning. Supplemental Resources Al Nasser, O.M. (2010). How does foreign direct investment affect economic growth? The role of local conditions. Latin American Business Review 11, 111-139. Kornecki, L. & E. M. Ekanayake. (2011). Inward FDI stock in the U.S. economy and state based determinants. Advances in Management, 4(6), 13-24. Ranjan, V. & Agrawal, G. (2011). FDI inflow determinants in BRIC countries: A panel data analysis. International Business Research, 4(4), 255-263. United Nations. (2011). Foreign Direct Investments in LDCs: Lessons learned from the decade 20012010 and the way forward. United National Conference on Trade and Development. COURSE LEARNING OUTCOMES 1. Compare multinational financial management to domestic financial management...
Words: 4298 - Pages: 18
...| |UNIVERSITI TUNKU ABDUL RAHMAN (UTAR) | | |FACULTY OF ACCOUNTANCY AND MANAGEMENT | | | | | |Bachelor of International Business (Hons) | | | | | |Unit Code & |UKFF4024 | | |Unit Title: |MULTINATIONAL FINANCE | | |Course of Study: |Bachelor of International Business (Hons) | | |Year of Study: |Year Three, Trimester Two | | |Trimester Year |Jan 2016 | | |Credit Hour: |4 credit hours ...
Words: 2523 - Pages: 11
...Multinational Finance Assignment [Name] [Institutional Affiliation] Multinational Finance Assignment Introduction This paper is based on the foreign exchange theories and the strategies used to minimize the risk of foreign exchange. The scenario is about the two multinational airlines. One is United States Airline and the other is Lufthansa (German) airlines. Both of them are exposed to foreign exchange risks as their transactions is in different currencies. In the scenario, U.S airlines has order from France the Airbus so, they have to pay France in Euro currency. However, United States airlines report their financials in Dollars. So, any slight change in Euro will impact the profits of United States Airlines. On the other hand, we have the case of Lufthansa Airlines which is purchasing a Boeing from USA and their reporting currency is Euro. So, both of the airlines are exposed to risks in the scenarios. This paper will address the foreign exchange theories involved in the case and strategies that will help these two airlines minimize their risk of currency fluctuations. The paper will also show calculations and the instruments used to minimize foreign exchange risks and calculating profits. Analysis of Foreign Exchange market theories in the scenario Foreign exchange market is the one which involves foreign currencies like euro, pounds or yen and it the one that is traded from local currency for e.g. the dollar. The network of foreign exchange is a decentralized one...
Words: 1904 - Pages: 8
...Building 260306 Yee-Tien (Ted) Fu Undergraduate: Tuesdays 9:10:noon Commerce 260508 Autumn 2009 (3 units) Course Objective This course examines important issues in the rapidly evolving area of international financial markets. It focuses on various aspects of international portfolio management and open-economy macroeconomics, and is a natural extension to the theories and practical issues explored in Investments and/or Finance. This course is aimed at students wishing to acquire a sound understanding of the main opportunities in international investments. For example, the relevance of hedging in the management of currency risk will be studied in light of theoretical results and empirical evidence. We will also briefly cover foreign direct investment (FDI), since in general, the revenue generated from FDI by U.S. firms is about three times as large as the revenue generated from the exporting of U.S. goods by U.S. firms. Due to the ever increasing importance of international corporate governance, there is a corresponding need to decipher and use information in financial reports. At least one class meeting and one case study will touch on some key issues in international financial reporting and analysis, such as financial disclosure/transparency, incentives for off-balance sheet liabilities, hedge accounting, lease accounting, footnote disclosures, and intercorporate equity investments, and international financial reporting differences. We will also use many...
Words: 1941 - Pages: 8
...International Financial Management Assignment: Exchange Rate Risk Management As the world of business becomes increasingly global, multinational corporations (MNCs) are establishing the production and marketing operations in foreign countries. These MNCs face a variety of challenges. One of challenge faced by MNCs in foreign markets is fluctuations in currency exchange rates. Movements in exchange rates can cause instability in profit margins and significant losses to an MNC’s bottom line. Thus, exchange rate risk management is an integral part in MNC’s decisions about foreign currency exposure. Measuring and managing exchange rate risk exposure are important functions in reducing a MNC’s vulnerabilities from major exchange rate movements. In order to manage currency exchange rate risks, MNC often use financial instruments or currency derivatives. Required: 1. What are the types of exchange rate risks faced by the MNCs? 2. Understand the attempt for the use of foreign exchange derivatives (exchange rate risk management approaches) that can benefits the MNCs. Assignment required student to demonstrate professional skills in research, presentation and communication with full references and an appropriate bibliography. * Assignment should be completed using a word processor and should be no more than 10 pages, using Arial 12, single spaced. * Submission should be a single word document. * This is an independent assessment, and it is unlikely that students...
Words: 1014 - Pages: 5
...[pic] Australian School of Business School of Banking and Finance FINS 5516 International Corporate Finance Course Outline Session 1, 2010 1. Course Staff 3 1.1 Communication with Staff 3 2. Information about the course 3 2.1 Teaching Times and Locations 3 2.2 Units of Credit 3 2.3 Parallel Teaching in the Course 3 2.4 Relationship of This Course to Other Course Offerings 3 3. Course Aims and Learning Outcomes 3 3.1 Course Aims 3 3.2 Student Learning Outcomes 4 3.3 Approach to Learning and Teaching 5 3.4 Teaching Strategies 5 4. Continual Course evaluation and Improvement 5 5. Learning Assessment 5 5.1 Formal Requirements 5 5.2 Assessment Details 5 5.3 Assignment Format 6 5.4 Assignment Submission Procedure 6 5.5 Late Submission 6 5.6 Special Consideration and Supplementary Examinations 6 6. Academic Honesty and Plagiarism 7 7. Student responsibilities and conduct 7 7.1 Workload 8 7.2 Attendance 8 7.3 General Conduct and Behaviour 8 7.4 Keeping Informed 8 8. Student Resources 9 8.1 Course Resources 9 8.2 Other Resources, Support and Information 9 9. Course Schedule 12 1. Course Staff A/PROF. DONGHUI LI Office: ASB 342 Email: donghui@unsw.edu.au Tel: 9385 5873 1.1 Communication with Staff Consultation Hours: Friday 9:00 –11:00 Outside these times, meetings are by prior appointment only. E-mail the staff in question and arrange a mutually convenient time. Teaching staff will only respond to...
Words: 2909 - Pages: 12
...GLOBAL BUSINESS MANAGEMENT (MGT380) DEGREE IN BUSINESS STUDY (BBA) MODULE HANDBOOK Instructor: IMRAN KHAN Office Timing: 0930-1730 Faculty of Business Administration Department of Management Sciences CONTENTS S.No | Topic | Page No. | 1. | Module Handbook | 1 | 2. | Contents | 2 | 3. | Introduction | 3 | 4. | Contacting the Module Instructor | 3 | 5. | Aim for this Course | 3 | 6. | Prerequisites | 4 | 7. | Teaching and Learning Strategies | 4 | 8. | Learning outcomes | 5 | 9. | My teaching Philosophy | 5 | 10 | Assessment Scheme | 5 | 11. | Reading Materials | 6 | 12. | Course Requirements and Expectations | 6 | 13. | Assessed Coursework | 7 | 14. | Academic Dishonesty | 7 | 15. | Plagiarism and Cheating | 7 | 16. | Course Outline | 8 | 17. | Detailed Course Outline | 9 | INTRODUCTION__________________________________________________ Today the world is becoming a global village. No country has such great economy that can survive by its own. The 21st century is the era of interdependence, globalization, and outsourcing. The International environment is more complicated than domestic and more challenging. Transnational problems whether environmental, cultural, economic and political, needs better understanding to compete in international world. This course, International Business (IB MGT 480) provides a foundation to understand different strategies required in international business whether at small scale or large scale....
Words: 2534 - Pages: 11
...an overview of the means of conducting international business, with an emphasis on what makes international different from domestic; (2) the effects of the social systems within countries on the conduct of international business; (3) the major theories explaining international business transactions and the institutions influencing those activities; (4) the financial exchange systems and institutions that measure and facilitate international transactions; (5) the dynamic interface between countries and companies attempting to conduct foreign business activities; (6) corporate strategy alternatives for global operations; and (7) international activities that fall largely within functional disciplines. Course Objectives: Understand the different challenges business face when they operate in an international environment; 2. Examine the various cultural, political and legal issues that impact international business activity; 3. Examine the international institutions and practices that impact international business; 4. Understand trade and investment theory, foreign exchange and the determination of foreign exchange rates; 1 5. Appreciate the interaction of business and government as they relate to international commerce; 6. Develop insight into the management implications of international business strategy and operations. Course Outcomes: Student should be able to: ...
Words: 1088 - Pages: 5
...STAFF Mr. Mohd Jamil Jelani is a Senior lecturer in banking and finance. He holds a Bachelor of Accountancy (Honours) and MBA in Applied Finance and Investment from National University of Malaysia; he is also a Chartered Accountant from Malaysian Institute of Accountants. Prior to his lecturing career, he served as a Group Financial Controller of a local company. Mr. Mohd Jamil has a wide experience in the teaching of Accounting and Finance, as he has been involved in the academic field for more than 9 years. Subject Overview The subject aims to develop an understanding of a representative range of issues in international finance and global financial markets. It covers topics such as sport and forward exchange rates, interest rate parity, currency hedging and exchange rate forecasting techniques. It also covers new developments in the international financial system such as eurocommercial paper and the internationalisation of the equity market. Introduction This subject extends financial management to an international context and is an essential component of international business studies. In reaching beyond national frontiers the risk management aspect of corporate finance assumes greater prominence. On the one hand there are opportunities for risk reduction through international diversification; on the other hand there is exposure to risks -...
Words: 6848 - Pages: 28
...Week 7 Assignment: Salem Manufacturing Directions For this assignment, you’ll read about Salem Manufacturing and answer the question that follows. This assignment is due at 11:59 p.m. on the seventh day of Week 7. Grading Criteria Use the following criteria to guide your work for your Week 7 assignment. Tasks | Target: | Week 7 Assignment: Salem Manufacturing | This assignment will be graded by a key provided by the instructor. Weekly assignments are worth 40 percent of your final grade, with the instructor taking the best four scores out of the five weekly assignments. (10 points) | Hedging using Foreign Currency Derivatives Shiela Penny is the Chief Financial Officer [CFO] of SALEM Manufacturing, a U.S. based manufacturer of gas turbine equipment. She has just concluded negotiations for the sale of a turbine generator to Crown, a British firm for One million pounds. This single sale is quite large in relation to SALEM’s present business. SALEM has no other current foreign customers, so the currency risk of this sale is of particular concern. The sale is made in September with payment due three months later in December. Shiela Penny has collected the following financial market information for the analysis of her currency exposure problem: Spot Exchange rate: $1.5640 per British pound. 1,000,000 x 1.5640 = 1,564,000 Three month forward rate: $1.5549 per pound 1,000,000 x 1.5549 = 1,554,900 SALEM’s cost of capital: 16% U.K...
Words: 845 - Pages: 4
...1. Introduction The exchange rate volatility and its impact on the volume of international trade has been studied Intensively during 1970’s when the world economy shifted from fixed exchange rate to free floating Exchange rate. The hypotheses may be that if the exchange rate volatility is higher than it will generate Uncertainty of the future profit from export trade. To diminish the uncertainty investors can go for Currency hedge and minimize the uncertainty related to international trade in short time. In long the Run, exchange rate volatility may also affect trade indirectly by influencing firm’s investment decision. However, the commercial investors have limited possibilities of trading claims to future operational Cash flows. Hence they are forced to shift away to less risky markets. According to these arguments, traders are risk averse, and hedging is expensive or impossible. Therefore, exchange rate volatility will reduce risk adjusted profit from foreign trade. The high degree of volatility and uncertainty of Exchange rate movements since the beginning of the generalized floating in 1973 have led policy makers and researchers to investigate the nature and extent of the impact of such movements on the volume of trade. However, the studies dealt with the exchange rate volatility and its effect on trade flows have yielded mixed results. On one hand, a number of studies have argued that exchange rate volatility will impose costs on risk averse market participants...
Words: 5364 - Pages: 22
...Task Brief 2 – Written Assignment Module Title: | International Business Finance | Assessment Title: | Written Assignment | Individual/Group: | Individual | Weighting: | 70% | Submission Date: | week 24 | Instructions To Students For Submission Of This Coursework Task Details: This task takes the form of an essay and constitutes 70% of overall assessment for the module. You are required to choose ONE of the following two topics: (i) Discuss and evaluate the advantages and disadvantages of the methods used in order to hedge against the exchange rate risk? (iii) Why is it so difficult to predict future exchange rates? Critically evaluate the main methods available for predicting the future direction of exchange rates and assess their effectiveness in providing forecasts of use to international companies. Particular instructions to students: The assignment is to be no longer than 3000 words and should contain critical analysis, relevant empirical evidence and examples. Purpose of the module:This modules aims: • To provide an understanding of the theories and empirical evidence related to foreign exchange markets, and the implications of these for international firms. • To generate an understanding of the methods available to international companies to finance international trade investment and the risk associated with investment operations. • To review the alternative sources of funding available to a company.• To provide...
Words: 850 - Pages: 4
