This document discusses different types of foreign exchange risk that companies face when operating internationally. It provides two example cases:
1) A Japanese car maker in the US that would be negatively impacted if the dollar depreciates against the yen, increasing costs. If the dollar appreciates instead, it would positively impact the company.
2) A Japanese electronics manufacturer in Japan selling to US firms. An appreciating dollar (increasing from $1=¥23 to $1=¥30) would negatively impact the yen value of sales.
The risks discussed are operating risk from fluctuating exchange rates, transaction risk, and translation or accounting risk from currency value changes affecting financial statements.
This presentation covers foreign exchange risk definition, types, management and measurement. Hedging tools and techniques; both internal and external are also discussed.
Teaching CaseJ-TRADING full circle outsourcingValerie J.docxbradburgess22840
Teaching Case
J-TRADING: full circle outsourcing
Valerie Jaiswal1, Natalia Levina2
1Regeneron Pharmaceutical, Tarrytown, NY, USA;
2Stern School of Business, New York University, New York, USA
Correspondence:
N Levina, Stern School of Business, IOMS Department, New York University, 44 West 4th Street, KMEC 8-78, NY 10012,
New York, USA.
Tel: þ 1-212-998-0850 ;
Fax: þ 1-212-995-4228
Abstract
J-TRADING is a US-based arm of a Japanese keiretsu that is focused on commodity
trading between the East and North America counting about 350 employees in the US. It
has experienced problems with its information technology (IT) infrastructure and help-desk
functions. IT employees were not motivated to work on these rather mundane tasks
leading to quality and cost issues. J-TRADING CIO decided to solve the problem by
outsourcing both functions. The case relays J-TRADING’s outsourcing journey through its
ups and downs discussing the process of vendor evaluation and selection, task transition,
relationship management, and business outcomes. The case provides full financial details
necessary for financial analysis and asks students to evaluate the sourcing decision itself
as well as vendor selection and governance processes. It also asks students to elaborate
on alternative sourcing approaches such as offshoring and cloud-based solutions.
Journal of Information Technology Teaching Cases (2012) 2, 61–70. doi:10.1057/jittc.2012.11;
published online 13 November 2012
Keywords: cost benefit analysis; Data center; Help desk; outsourcing; vendor selection
Part A
J
ohn Smith, Director of Information Technology (IT),
looked out of the window of his corner office on the 43rd
floor of the New York City high rise. It was 8:30 PM and
most people on Madison Avenue were just tourists strolling
and gazing at the store window displays. He had to have his
presentation for the Japanese Management ready by 9:00 AM
tomorrow and he was still struggling with answers to the
numerous questions that were running through his mind.
A year ago he had presented to the same management
group the benefits of outsourcing. He had been very excited
about his new strategic direction for the IT department. There
had been unanimous approval for his proposed plan. After
that it had been a tumultuous year of highs and lows. Now he
had to justify his new proposal, especially those parts that
were the complete opposite from his prior proposed plan.
JICO – a keiretsu
Zaibatsus were large capitalist enterprises of Japan devel-
oped between Meiji Restoration (1868) and World War II,
similar to cartels or trusts but usually organized around a
single family. They operated companies in all-important
areas of economic and industrial activity and owned banks
for mobilizing capital. The war in the Pacific ended on
2nd September 1945, with the signing of the peace treaty
on board the USS Missouri in Tokyo Bay. The American
occupation of Japan lasted until 1952. During this occupa-
tion, the Anti-monopol.
Teaching CaseJ-TRADING full circle outsourcingValerie J.docxdeanmtaylor1545
Teaching Case
J-TRADING: full circle outsourcing
Valerie Jaiswal1, Natalia Levina2
1Regeneron Pharmaceutical, Tarrytown, NY, USA;
2Stern School of Business, New York University, New York, USA
Correspondence:
N Levina, Stern School of Business, IOMS Department, New York University, 44 West 4th Street, KMEC 8-78, NY 10012,
New York, USA.
Tel: þ 1-212-998-0850 ;
Fax: þ 1-212-995-4228
Abstract
J-TRADING is a US-based arm of a Japanese keiretsu that is focused on commodity
trading between the East and North America counting about 350 employees in the US. It
has experienced problems with its information technology (IT) infrastructure and help-desk
functions. IT employees were not motivated to work on these rather mundane tasks
leading to quality and cost issues. J-TRADING CIO decided to solve the problem by
outsourcing both functions. The case relays J-TRADING’s outsourcing journey through its
ups and downs discussing the process of vendor evaluation and selection, task transition,
relationship management, and business outcomes. The case provides full financial details
necessary for financial analysis and asks students to evaluate the sourcing decision itself
as well as vendor selection and governance processes. It also asks students to elaborate
on alternative sourcing approaches such as offshoring and cloud-based solutions.
Journal of Information Technology Teaching Cases (2012) 2, 61–70. doi:10.1057/jittc.2012.11;
published online 13 November 2012
Keywords: cost benefit analysis; Data center; Help desk; outsourcing; vendor selection
Part A
J
ohn Smith, Director of Information Technology (IT),
looked out of the window of his corner office on the 43rd
floor of the New York City high rise. It was 8:30 PM and
most people on Madison Avenue were just tourists strolling
and gazing at the store window displays. He had to have his
presentation for the Japanese Management ready by 9:00 AM
tomorrow and he was still struggling with answers to the
numerous questions that were running through his mind.
A year ago he had presented to the same management
group the benefits of outsourcing. He had been very excited
about his new strategic direction for the IT department. There
had been unanimous approval for his proposed plan. After
that it had been a tumultuous year of highs and lows. Now he
had to justify his new proposal, especially those parts that
were the complete opposite from his prior proposed plan.
JICO – a keiretsu
Zaibatsus were large capitalist enterprises of Japan devel-
oped between Meiji Restoration (1868) and World War II,
similar to cartels or trusts but usually organized around a
single family. They operated companies in all-important
areas of economic and industrial activity and owned banks
for mobilizing capital. The war in the Pacific ended on
2nd September 1945, with the signing of the peace treaty
on board the USS Missouri in Tokyo Bay. The American
occupation of Japan lasted until 1952. During this occupa-
tion, the Anti-monopol.
Example Test 11. František, a.s. is a company based in the Czech.docxelbanglis
Example Test 1
1. František, a.s. is a company based in the Czech Republic and operating mainly in the Czech Republic and Russia. The table below lists the Government bond rate for local currency bonds in each of those countries, the sovereign ratings, the CDS spreads of each of those countries, and the revenues František expects to generate in each market.
Country
Revenue in Billions of Koruna
Local Currency
Gov’t Bond Rate in Local Currency
Sovereign Rating
Sovereign CDS Spread
Russia
30
Rubles
12%
Ba1
2.5%
Czech Rep.
70
Koruna
1.5%
A1
0.5%
a. Estimate the risk-free rate in Koruna
b. Estimate the market risk premium for the company. Assume that in these countries equity is 1.5 times riskier than the government bond. Mature markets have a market risk premium of 6%. (2 points)
2. Here is information from the beta page for Alphabet, Inc. (aka Google) based on 2 years of weekly data.
Interpret the intercept of the regression. (What does it tell us about the company?)
Interpret the R2 of the regression. (What does it tell us about the company?)
3. IBM is considering an acquisition of Twitter (to augment and advertise its data mining services). You have collected the following information about the two companies:
IBM
Twitter
Market Cap (in $Billion)
150
20
Debt (in $Billion)
50
0
Levered Beta
1.0
1.3
Assume both firms have a marginal tax rate of 40%.
a. Estimate the unlevered beta for IBM after the acquisition. (3 points)
b. Assume that IBM will borrow $50 billion. They will use $20 billion to buy out Twitter shareholders. They will use the rest ($30 billion) to buy back stock. Estimate the (levered) beta for IBM after the acquisition. (2 points)
Example Test 2
1. Odinsa, S.A. is a Colombian construction and infrastructure development company operating primarily in Colombia, but also in Chile and Panama, and in the Dominican Republic and other parts of the Caribbean.
Here is the Beta Regression page returned by Bloomberg for the company:
The index used for this regression is COLCAP – a Colombian stock index. (The six largest stocks in the index constitute half of the index’s market capitalization.)
Interpret the intercept of this regression. (What is it telling us about the company?)
2. You have been given the following information:
Country
Local Currency Bond Yield
CDS Spread
Standard Deviation in Government Bond
Standard Deviation in Equity
Colombia
7.0%
1.39%
15%
35%
Chile
4.2%
0.96%
10%
20%
a. Estimate the risk-free rate in Colombian pesos.
b. Estimate the market risk premium for operations in Chile. (You may assume the market risk premium in mature markets is 5%.)
3. You have been asked to estimate a levered beta for Flatline Medical Co., a company that operates in the pharmaceutical and healthcare support service industries. You have calculated the following:
Comparable Firms
Business
Estimated value (in $million)
Regression Beta
D/E ratio
Pharma
$1,200
1.02
15%
Services
...
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The Role of Non-Banking Financial Companies (NBFCs)
Foreign Exchange Risk
1. Foreign Exchange Risk Introduction Case 1- Japanese Car Maker In US- Situation is that $ depreciates against Yen on the other hand assume that $had appreciated against Yen what would the impact in both the situtation
![Case II ,[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)