SlideShare a Scribd company logo

Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007

•Download as PPT, PDF•
•
knksmart
knksmart

The document discusses economic theories about how exchange rates are determined, including supply and demand factors like changes in income, prices, and interest rates. It also mentions investor psychology and government actions as influences. Exchange rate fluctuations can impact international trade and foreign direct investment by affecting the costs of transactions. Companies may use tools like forward contracts to hedge against foreign exchange risk. When export prices change due to exchange rate movements, companies must decide whether and how much to "pass through" the changes to consumers. Generally, price inelastic goods see higher pass-through while elastic goods see less.

Economy & FinanceBusiness
1 of 43
Economic Theories about How Exchange Rates are Determined: Summary ,[object Object],[object Object],[object Object],[object Object],[object Object]
Economic Theories about How Exchange Rates are Determined: Summary ,[object Object],[object Object]
Foreign Exchange Issues: International Trade and FDI Selected topics in lecture and selected topics from Chapter 10 (pages 357-361) Foreign Exchange Chapter 19 (pages 650-660) Accounting Chapter 20 (pages 681-682) International Financial Management
Forex Issues: International Trade & Foreign Direct Investment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CSU EBAY ,[object Object],[object Object],[object Object],[object Object],EXAMPLE: FORWARD EXCHANGE NOW 30 DAYS Your bid of US $10,000 for one of the two Maseratis for sale was accepted by CSUEBAY. You can take delivery now or in thirty days. You check both Spot and the Forward exchange rates to decide when you want to take delivery. What will you do ?
 
Selected Issues in Foreign Exchange and International Trade ,[object Object],[object Object],[object Object],[object Object]
Forex and Export Pricing ,[object Object],[object Object],[object Object],[object Object],? Or
Impacts of Forex on International Trade ,[object Object],[object Object],[object Object]
Export Management & Price Strategies in relation to Foreign Exchange ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Extracted and restated from: Chapter 71 Levy, Frerichs, and Gordon, eds. Marketing Manager’s Handbook, Dartnell Corporation, Chicago, IL. Fig 2.
M2 CALLS IN: PASS THROUGH OR NO PASS? ,[object Object]
Pricing Issues in International Trade: Exchange Rate Pass-Through ,[object Object],[object Object],[object Object]
Pricing Issues in International Trade: Exchange Rate Pass-Through ,[object Object],[object Object]
Pricing Issues in International Trade: Exchange Rate Pass-Through ,[object Object],[object Object]
Other Factors impacting Pricing and Pass-Through Decisions ,[object Object],[object Object],[object Object],[object Object]
Pricing Issues in International Trade: Exchange Rate Pass-Through ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Pricing Issues in International Trade: Exchange Rate Pass-Through ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Pricing Issues in International Trade: Exchange Rate Pass-Through ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example of Pricing decision due to foreign exchange rate PASS-THROUGH WITH A REDUCTION IN PRICE
Examples of Pass-Through Levels ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],c. 1988 Source: Exchange Rates and Pass-Through
To Pass-Through or Not Pass-Through—that is the question ,[object Object],[object Object],[object Object]
Other Impacts of Forex fluctuation ,[object Object],Fluctuations in Forex can impact markets/consumers in other ways.
Foreign Exchange Issues in Foreign Direct Investment ,[object Object],[object Object],[object Object],[object Object],[object Object]
Issues in Foreign Direct Investment: Types of Foreign Exchange Risk (Chapter 10) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Transaction Exposure ,[object Object],[object Object],[object Object],[object Object]
Translation Exposure ,[object Object],[object Object]
Translation Exposure ,[object Object],[object Object],[object Object]
Translation Exposure ,[object Object],[object Object],[object Object]
Translation Exposure ,[object Object],[object Object],[object Object],[object Object],[object Object]
Currency Translation ,[object Object],[object Object],[object Object],[object Object]
Currency Translation ,[object Object],[object Object],[object Object],[object Object]
Current U.S. Practice ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Current U.S. Practice SOURCE: Eitman, David K., Stonehill, Arthur L., Moffet, Michael H. MULTINATIONAL BUSINESS FINANCE. Addison Westley: New York, 2001. p.92
Reducing Transaction & Translation Exposure ,[object Object],[object Object],[object Object],[object Object]
Example: Lead & Lag ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Reducing Economic Exposure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Reducing Economic Exposure ,[object Object],[object Object],[object Object],[object Object]
FOREX & FDI: Transfer Pricing ,[object Object],[object Object],[object Object]
FOREX & FDI :Transfer Pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
FOREX & FDI :Transfer Pricing ,[object Object],[object Object],[object Object],[object Object],[object Object]
FOREX & FDI: Budget and Control Systems ,[object Object],[object Object],[object Object],[object Object]
General Guidelines for Policies to Manage Forex Exposure ,[object Object],[object Object],[object Object],[object Object],[object Object]
General Guidelines for Policies to Manage Forex Exposure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Recommended

4.5 International Economics Balance Of Payments
4.5 International Economics Balance Of Payments4.5 International Economics Balance Of Payments
4.5 International Economics Balance Of PaymentsAndrew McCarthy
 
4.6 International Economics Exchange Rates
4.6 International Economics Exchange Rates4.6 International Economics Exchange Rates
4.6 International Economics Exchange RatesAndrew McCarthy
 
Foreign exchange rate determination
Foreign exchange rate determinationForeign exchange rate determination
Foreign exchange rate determinationYagnesh sondarva
 
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange Market
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange MarketEcon315 Money and Banking: Learning Unit 15: Foreign Exchange Market
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange Marketsakanor
 
Effect of dollar fluctuation on Indian trade.
Effect of dollar fluctuation on Indian trade.Effect of dollar fluctuation on Indian trade.
Effect of dollar fluctuation on Indian trade.Sajal Agarwal
 
Forex markets, exchange rate determination
Forex markets, exchange rate determinationForex markets, exchange rate determination
Forex markets, exchange rate determinationApurv Verma
 
Exchange rate determination.
Exchange rate determination.Exchange rate determination.
Exchange rate determination.priyankasahu123
 
Exchange Rate Determination
Exchange Rate DeterminationExchange Rate Determination
Exchange Rate DeterminationICAB
 

Recommended

4.5 International Economics Balance Of Payments
4.5 International Economics Balance Of Payments4.5 International Economics Balance Of Payments
4.5 International Economics Balance Of PaymentsAndrew McCarthy
 
4.6 International Economics Exchange Rates
4.6 International Economics Exchange Rates4.6 International Economics Exchange Rates
4.6 International Economics Exchange RatesAndrew McCarthy
 
Foreign exchange rate determination
Foreign exchange rate determinationForeign exchange rate determination
Foreign exchange rate determinationYagnesh sondarva
 
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange Market
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange MarketEcon315 Money and Banking: Learning Unit 15: Foreign Exchange Market
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange Marketsakanor
 
Effect of dollar fluctuation on Indian trade.
Effect of dollar fluctuation on Indian trade.Effect of dollar fluctuation on Indian trade.
Effect of dollar fluctuation on Indian trade.Sajal Agarwal
 
Forex markets, exchange rate determination
Forex markets, exchange rate determinationForex markets, exchange rate determination
Forex markets, exchange rate determinationApurv Verma
 
Exchange rate determination.
Exchange rate determination.Exchange rate determination.
Exchange rate determination.priyankasahu123
 
Exchange Rate Determination
Exchange Rate DeterminationExchange Rate Determination
Exchange Rate DeterminationICAB
 
Exchange rate volatility
Exchange rate volatilityExchange rate volatility
Exchange rate volatilityMohit Mahajan
 
Interest Rate Parity and Purchasing Power Parity
Interest Rate Parity and Purchasing Power ParityInterest Rate Parity and Purchasing Power Parity
Interest Rate Parity and Purchasing Power ParityMAJU
 
New demand ppt
New demand pptNew demand ppt
New demand pptsukhwinder22
 
Exchange rate forecasting techniques.
Exchange rate forecasting techniques.Exchange rate forecasting techniques.
Exchange rate forecasting techniques.DeepthiPrabhu9
 
Currency Flow And Exchange Rate Determination
Currency Flow And Exchange Rate DeterminationCurrency Flow And Exchange Rate Determination
Currency Flow And Exchange Rate Determinationshubham mittal
 
Analysis of foreign exchange exposure
Analysis of foreign exchange exposureAnalysis of foreign exchange exposure
Analysis of foreign exchange exposureStudsPlanet.com
 
Exchange rates
Exchange ratesExchange rates
Exchange ratestondion
 
Determination of foreign exchange rate
Determination of foreign exchange rateDetermination of foreign exchange rate
Determination of foreign exchange rateRaj vardhan
 
Exchange Rate
Exchange RateExchange Rate
Exchange RateLando Graham
 
International parity condition
International parity conditionInternational parity condition
International parity conditionMaica Batiancela
 
Fixed Exchange Rate: Overview, Pros and Cons, and Examples
Fixed Exchange Rate: Overview, Pros and Cons, and ExamplesFixed Exchange Rate: Overview, Pros and Cons, and Examples
Fixed Exchange Rate: Overview, Pros and Cons, and Examplesvazoof
 
Chapter 2
Chapter 2Chapter 2
Chapter 2avibd07
 
Ch04 Exchange rate determination
Ch04 Exchange rate determinationCh04 Exchange rate determination
Ch04 Exchange rate determinationAbraish Georgeous
 
Macro exchange rate
Macro exchange rateMacro exchange rate
Macro exchange rateUniversity of Management and Technology (Pakistan)
 
Intl parity cond.
Intl parity cond.Intl parity cond.
Intl parity cond.Ashish Singla
 
3 Supply And Demand
3 Supply And Demand3 Supply And Demand
3 Supply And Demandamitsharma8992
 
Ib
IbIb
Ibajikesh
 
Currency Exchange Risk
Currency Exchange Risk Currency Exchange Risk
Currency Exchange Risk Asia Pacific Marketing Institute
 
Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007
Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007
Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007knksmart
 
Exchange rates & International managerial issues
Exchange rates & International managerial issuesExchange rates & International managerial issues
Exchange rates & International managerial issuesTanzeel Mehmood
 
Financial forces in international business2
Financial forces in international business2Financial forces in international business2
Financial forces in international business2ajikesh
 
Unit2 International Trade Theory Fdi And Foreign Exchange Market
Unit2 International Trade Theory Fdi And Foreign Exchange MarketUnit2 International Trade Theory Fdi And Foreign Exchange Market
Unit2 International Trade Theory Fdi And Foreign Exchange Marketzuleidaramirez
 

More Related Content

What's hot

Exchange rate volatility
Exchange rate volatilityExchange rate volatility
Exchange rate volatilityMohit Mahajan
 
Interest Rate Parity and Purchasing Power Parity
Interest Rate Parity and Purchasing Power ParityInterest Rate Parity and Purchasing Power Parity
Interest Rate Parity and Purchasing Power ParityMAJU
 
Exchange rate forecasting techniques.
Exchange rate forecasting techniques.Exchange rate forecasting techniques.
Exchange rate forecasting techniques.DeepthiPrabhu9
 
Currency Flow And Exchange Rate Determination
Currency Flow And Exchange Rate DeterminationCurrency Flow And Exchange Rate Determination
Currency Flow And Exchange Rate Determinationshubham mittal
 
Analysis of foreign exchange exposure
Analysis of foreign exchange exposureAnalysis of foreign exchange exposure
Analysis of foreign exchange exposureStudsPlanet.com
 
Exchange rates
Exchange ratesExchange rates
Exchange ratestondion
 
Determination of foreign exchange rate
Determination of foreign exchange rateDetermination of foreign exchange rate
Determination of foreign exchange rateRaj vardhan
 
International parity condition
International parity conditionInternational parity condition
International parity conditionMaica Batiancela
 
Fixed Exchange Rate: Overview, Pros and Cons, and Examples
Fixed Exchange Rate: Overview, Pros and Cons, and ExamplesFixed Exchange Rate: Overview, Pros and Cons, and Examples
Fixed Exchange Rate: Overview, Pros and Cons, and Examplesvazoof
 
Chapter 2
Chapter 2Chapter 2
Chapter 2avibd07
 
Ch04 Exchange rate determination
Ch04 Exchange rate determinationCh04 Exchange rate determination
Ch04 Exchange rate determinationAbraish Georgeous
 

What's hot (16)

Exchange rate volatility
Exchange rate volatilityExchange rate volatility
Exchange rate volatility
 
Interest Rate Parity and Purchasing Power Parity
Interest Rate Parity and Purchasing Power ParityInterest Rate Parity and Purchasing Power Parity
Interest Rate Parity and Purchasing Power Parity
 
New demand ppt
New demand pptNew demand ppt
New demand ppt
 
Exchange rate forecasting techniques.
Exchange rate forecasting techniques.Exchange rate forecasting techniques.
Exchange rate forecasting techniques.
 
Currency Flow And Exchange Rate Determination
Currency Flow And Exchange Rate DeterminationCurrency Flow And Exchange Rate Determination
Currency Flow And Exchange Rate Determination
 
Analysis of foreign exchange exposure
Analysis of foreign exchange exposureAnalysis of foreign exchange exposure
Analysis of foreign exchange exposure
 
Exchange rates
Exchange ratesExchange rates
Exchange rates
 
Determination of foreign exchange rate
Determination of foreign exchange rateDetermination of foreign exchange rate
Determination of foreign exchange rate
 
Exchange Rate
Exchange RateExchange Rate
Exchange Rate
 
International parity condition
International parity conditionInternational parity condition
International parity condition
 
Fixed Exchange Rate: Overview, Pros and Cons, and Examples
Fixed Exchange Rate: Overview, Pros and Cons, and ExamplesFixed Exchange Rate: Overview, Pros and Cons, and Examples
Fixed Exchange Rate: Overview, Pros and Cons, and Examples
 
Chapter 2
Chapter 2Chapter 2
Chapter 2
 
Ch04 Exchange rate determination
Ch04 Exchange rate determinationCh04 Exchange rate determination
Ch04 Exchange rate determination
 
Macro exchange rate
Macro exchange rateMacro exchange rate
Macro exchange rate
 
Intl parity cond.
Intl parity cond.Intl parity cond.
Intl parity cond.
 
3 Supply And Demand
3 Supply And Demand3 Supply And Demand
3 Supply And Demand
 

Similar to Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007

Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007
Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007
Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007knksmart
 
Exchange rates & International managerial issues
Exchange rates & International managerial issuesExchange rates & International managerial issues
Exchange rates & International managerial issuesTanzeel Mehmood
 
Financial forces in international business2
Financial forces in international business2Financial forces in international business2
Financial forces in international business2ajikesh
 
Unit2 International Trade Theory Fdi And Foreign Exchange Market
Unit2 International Trade Theory Fdi And Foreign Exchange MarketUnit2 International Trade Theory Fdi And Foreign Exchange Market
Unit2 International Trade Theory Fdi And Foreign Exchange Marketzuleidaramirez
 
International financial,marketing strategy.
International financial,marketing strategy.International financial,marketing strategy.
International financial,marketing strategy.Liz Mary Jose
 
The+open+economy+&+exchange+rates
The+open+economy+&+exchange+ratesThe+open+economy+&+exchange+rates
The+open+economy+&+exchange+ratesvideoaakash15
 
4.5 International Economics Balance Of Payments
4.5 International Economics Balance Of Payments4.5 International Economics Balance Of Payments
4.5 International Economics Balance Of PaymentsAndrew McCarthy
 
International payment
International paymentInternational payment
International paymentDaksh Bapna
 
Balance of Payments and Exchange Rate PPT.pptx
Balance of Payments and Exchange Rate PPT.pptxBalance of Payments and Exchange Rate PPT.pptx
Balance of Payments and Exchange Rate PPT.pptxHimaanHarish1
 
Chapter 13_The Foreign Exchange Market
Chapter 13_The Foreign Exchange MarketChapter 13_The Foreign Exchange Market
Chapter 13_The Foreign Exchange MarketRusman Mukhlis
 
GSM5480 International Finance MBA Quick Notes
GSM5480 International Finance MBA Quick NotesGSM5480 International Finance MBA Quick Notes
GSM5480 International Finance MBA Quick NotesAminudin Saari
 
8 Economic Factors That Affect The Forex Market | Valiant Markets
8 Economic Factors That Affect The Forex Market | Valiant Markets8 Economic Factors That Affect The Forex Market | Valiant Markets
8 Economic Factors That Affect The Forex Market | Valiant MarketsValiant Markets
 
The Impact of Foreign Exchange in International Business - October 2016
The Impact of Foreign Exchange in International Business - October 2016The Impact of Foreign Exchange in International Business - October 2016
The Impact of Foreign Exchange in International Business - October 2016Miguel Serricchio
 
Foreigh exchange rate Fluctiation
Foreigh exchange rate FluctiationForeigh exchange rate Fluctiation
Foreigh exchange rate FluctiationSundar B N
 
11 foreign-exchange
11 foreign-exchange11 foreign-exchange
11 foreign-exchangedomsr
 
Foreign exchange
Foreign exchangeForeign exchange
Foreign exchangedomsr
 

Similar to Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007 (20)

Ib
IbIb
Ib
 
Currency Exchange Risk
Currency Exchange Risk Currency Exchange Risk
Currency Exchange Risk
 
Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007
Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007
Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007
 
Exchange rates & International managerial issues
Exchange rates & International managerial issuesExchange rates & International managerial issues
Exchange rates & International managerial issues
 
Financial forces in international business2
Financial forces in international business2Financial forces in international business2
Financial forces in international business2
 
Unit2 International Trade Theory Fdi And Foreign Exchange Market
Unit2 International Trade Theory Fdi And Foreign Exchange MarketUnit2 International Trade Theory Fdi And Foreign Exchange Market
Unit2 International Trade Theory Fdi And Foreign Exchange Market
 
Monetary Policy
Monetary PolicyMonetary Policy
Monetary Policy
 
International financial,marketing strategy.
International financial,marketing strategy.International financial,marketing strategy.
International financial,marketing strategy.
 
The+open+economy+&+exchange+rates
The+open+economy+&+exchange+ratesThe+open+economy+&+exchange+rates
The+open+economy+&+exchange+rates
 
Exchange Rate
Exchange RateExchange Rate
Exchange Rate
 
4.5 International Economics Balance Of Payments
4.5 International Economics Balance Of Payments4.5 International Economics Balance Of Payments
4.5 International Economics Balance Of Payments
 
International payment
International paymentInternational payment
International payment
 
Balance of Payments and Exchange Rate PPT.pptx
Balance of Payments and Exchange Rate PPT.pptxBalance of Payments and Exchange Rate PPT.pptx
Balance of Payments and Exchange Rate PPT.pptx
 
Chapter 13_The Foreign Exchange Market
Chapter 13_The Foreign Exchange MarketChapter 13_The Foreign Exchange Market
Chapter 13_The Foreign Exchange Market
 
GSM5480 International Finance MBA Quick Notes
GSM5480 International Finance MBA Quick NotesGSM5480 International Finance MBA Quick Notes
GSM5480 International Finance MBA Quick Notes
 
8 Economic Factors That Affect The Forex Market | Valiant Markets
8 Economic Factors That Affect The Forex Market | Valiant Markets8 Economic Factors That Affect The Forex Market | Valiant Markets
8 Economic Factors That Affect The Forex Market | Valiant Markets
 
The Impact of Foreign Exchange in International Business - October 2016
The Impact of Foreign Exchange in International Business - October 2016The Impact of Foreign Exchange in International Business - October 2016
The Impact of Foreign Exchange in International Business - October 2016
 
Foreigh exchange rate Fluctiation
Foreigh exchange rate FluctiationForeigh exchange rate Fluctiation
Foreigh exchange rate Fluctiation
 
11 foreign-exchange
11 foreign-exchange11 foreign-exchange
11 foreign-exchange
 
Foreign exchange
Foreign exchangeForeign exchange
Foreign exchange
 

More from knksmart

Howto Avoid Mistakes
Howto Avoid MistakesHowto Avoid Mistakes
Howto Avoid Mistakesknksmart
 
Sgs Admissions Guide
Sgs Admissions GuideSgs Admissions Guide
Sgs Admissions Guideknksmart
 
Howto Avoid Mistakes
Howto Avoid MistakesHowto Avoid Mistakes
Howto Avoid Mistakesknksmart
 
CSUEB contact list
CSUEB contact listCSUEB contact list
CSUEB contact listknksmart
 
Point To Notes For Employers On Employment(Fdh)
Point To Notes For Employers On Employment(Fdh)Point To Notes For Employers On Employment(Fdh)
Point To Notes For Employers On Employment(Fdh)knksmart
 
Stat2010 Sample Final
Stat2010 Sample FinalStat2010 Sample Final
Stat2010 Sample Finalknksmart
 
Mgmt 4650 Project – Optional Paper Format
Mgmt 4650 Project – Optional Paper FormatMgmt 4650 Project – Optional Paper Format
Mgmt 4650 Project – Optional Paper Formatknksmart
 
Case Analysis Guide Long Format Mgmt4650
Case Analysis Guide Long Format Mgmt4650Case Analysis Guide Long Format Mgmt4650
Case Analysis Guide Long Format Mgmt4650knksmart
 
Pcworld 072007
Pcworld 072007Pcworld 072007
Pcworld 072007knksmart
 
Stochastic Process
Stochastic ProcessStochastic Process
Stochastic Processknksmart
 
Process & Capacity 2
Process & Capacity 2Process & Capacity 2
Process & Capacity 2knksmart
 
Managing Quality
Managing QualityManaging Quality
Managing Qualityknksmart
 

More from knksmart (20)

inf1125
inf1125inf1125
inf1125
 
BRXbox
BRXboxBRXbox
BRXbox
 
xv-ii.com
xv-ii.comxv-ii.com
xv-ii.com
 
Howto Avoid Mistakes
Howto Avoid MistakesHowto Avoid Mistakes
Howto Avoid Mistakes
 
Sgs Admissions Guide
Sgs Admissions GuideSgs Admissions Guide
Sgs Admissions Guide
 
Howto Avoid Mistakes
Howto Avoid MistakesHowto Avoid Mistakes
Howto Avoid Mistakes
 
Appform
AppformAppform
Appform
 
CSUEB contact list
CSUEB contact listCSUEB contact list
CSUEB contact list
 
Fd Hguide
Fd HguideFd Hguide
Fd Hguide
 
Point To Notes For Employers On Employment(Fdh)
Point To Notes For Employers On Employment(Fdh)Point To Notes For Employers On Employment(Fdh)
Point To Notes For Employers On Employment(Fdh)
 
Stat2010 Sample Final
Stat2010 Sample FinalStat2010 Sample Final
Stat2010 Sample Final
 
Artbook
ArtbookArtbook
Artbook
 
Mgmt 4650 Project – Optional Paper Format
Mgmt 4650 Project – Optional Paper FormatMgmt 4650 Project – Optional Paper Format
Mgmt 4650 Project – Optional Paper Format
 
Case Analysis Guide Long Format Mgmt4650
Case Analysis Guide Long Format Mgmt4650Case Analysis Guide Long Format Mgmt4650
Case Analysis Guide Long Format Mgmt4650
 
Pcworld 072007
Pcworld 072007Pcworld 072007
Pcworld 072007
 
Stochastic Process
Stochastic ProcessStochastic Process
Stochastic Process
 
Process & Capacity 2
Process & Capacity 2Process & Capacity 2
Process & Capacity 2
 
Las Vegas
Las VegasLas Vegas
Las Vegas
 
Managing Quality
Managing QualityManaging Quality
Managing Quality
 
Inventory
InventoryInventory
Inventory
 

Recently uploaded

what is a pi whale and how to access one.
what is a pi whale and how to access one.what is a pi whale and how to access one.
what is a pi whale and how to access one.DOT TECH
 
9th issue of our inhouse magazine Ingenious May 2024.pdf
9th issue of our inhouse magazine Ingenious May 2024.pdf9th issue of our inhouse magazine Ingenious May 2024.pdf
9th issue of our inhouse magazine Ingenious May 2024.pdfAnkur Shah
 
Jio Financial service Multibagger 2024 from India stock Market
Jio Financial service Multibagger 2024 from India stock MarketJio Financial service Multibagger 2024 from India stock Market
Jio Financial service Multibagger 2024 from India stock Marketfuturecapsadvisor
 
Proposer Builder Separation Problem in Ethereum
Proposer Builder Separation Problem in EthereumProposer Builder Separation Problem in Ethereum
Proposer Builder Separation Problem in EthereumRasoulRamezanian1
 
Summary of financial results for 1Q2024
Summary of financial results for 1Q2024Summary of financial results for 1Q2024
Summary of financial results for 1Q2024InterCars
 
PD ARRAY THEORY FOR INTERMEDIATE (1).pdf
PD ARRAY THEORY FOR INTERMEDIATE (1).pdfPD ARRAY THEORY FOR INTERMEDIATE (1).pdf
PD ARRAY THEORY FOR INTERMEDIATE (1).pdfJerrySMaliki
 
Digital Finance Summit 2024 Partners Brochure
Digital Finance Summit 2024 Partners BrochureDigital Finance Summit 2024 Partners Brochure
Digital Finance Summit 2024 Partners BrochureFinTech Belgium
 
Introduction to Indian Financial System ()
Introduction to Indian Financial System ()Introduction to Indian Financial System ()
Introduction to Indian Financial System ()Avanish Goel
 
how to sell pi coins in Canada, Uk and Australia
how to sell pi coins in Canada, Uk and Australiahow to sell pi coins in Canada, Uk and Australia
how to sell pi coins in Canada, Uk and AustraliaDOT TECH
 
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...Amil Baba Dawood bangali
 
what is the future of Pi Network currency.
what is the future of Pi Network currency.what is the future of Pi Network currency.
what is the future of Pi Network currency.DOT TECH
 
Economics and Economic reasoning Chap. 1
Economics and Economic reasoning Chap. 1Economics and Economic reasoning Chap. 1
Economics and Economic reasoning Chap. 1Fitri Safira
 
The new type of smart, sustainable entrepreneurship and the next day | Europe...
The new type of smart, sustainable entrepreneurship and the next day | Europe...The new type of smart, sustainable entrepreneurship and the next day | Europe...
The new type of smart, sustainable entrepreneurship and the next day | Europe...Antonis Zairis
 
Falcon Invoice Discounting: Optimizing Returns with Minimal Risk
Falcon Invoice Discounting: Optimizing Returns with Minimal RiskFalcon Invoice Discounting: Optimizing Returns with Minimal Risk
Falcon Invoice Discounting: Optimizing Returns with Minimal RiskFalcon Invoice Discounting
 
Webinar Exploring DORA for Fintechs - Simont Braun
Webinar Exploring DORA for Fintechs - Simont BraunWebinar Exploring DORA for Fintechs - Simont Braun
Webinar Exploring DORA for Fintechs - Simont BraunFinTech Belgium
 
how to sell pi coins on Binance exchange
how to sell pi coins on Binance exchangehow to sell pi coins on Binance exchange
how to sell pi coins on Binance exchangeDOT TECH
 
USDA Loans in California: A Comprehensive Overview.pptx
USDA Loans in California: A Comprehensive Overview.pptxUSDA Loans in California: A Comprehensive Overview.pptx
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
 
Latino Buying Power - May 2024 Presentation for Latino Caucus
Latino Buying Power - May 2024 Presentation for Latino CaucusLatino Buying Power - May 2024 Presentation for Latino Caucus
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
 
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理zsewypy
 
Introduction to Economics II Chapter 28 Unemployment (1).pdf
Introduction to Economics II Chapter 28 Unemployment (1).pdfIntroduction to Economics II Chapter 28 Unemployment (1).pdf
Introduction to Economics II Chapter 28 Unemployment (1).pdfSafa444074
 

Recently uploaded (20)

what is a pi whale and how to access one.
what is a pi whale and how to access one.what is a pi whale and how to access one.
what is a pi whale and how to access one.
 
9th issue of our inhouse magazine Ingenious May 2024.pdf
9th issue of our inhouse magazine Ingenious May 2024.pdf9th issue of our inhouse magazine Ingenious May 2024.pdf
9th issue of our inhouse magazine Ingenious May 2024.pdf
 
Jio Financial service Multibagger 2024 from India stock Market
Jio Financial service Multibagger 2024 from India stock MarketJio Financial service Multibagger 2024 from India stock Market
Jio Financial service Multibagger 2024 from India stock Market
 
Proposer Builder Separation Problem in Ethereum
Proposer Builder Separation Problem in EthereumProposer Builder Separation Problem in Ethereum
Proposer Builder Separation Problem in Ethereum
 
Summary of financial results for 1Q2024
Summary of financial results for 1Q2024Summary of financial results for 1Q2024
Summary of financial results for 1Q2024
 
PD ARRAY THEORY FOR INTERMEDIATE (1).pdf
PD ARRAY THEORY FOR INTERMEDIATE (1).pdfPD ARRAY THEORY FOR INTERMEDIATE (1).pdf
PD ARRAY THEORY FOR INTERMEDIATE (1).pdf
 
Digital Finance Summit 2024 Partners Brochure
Digital Finance Summit 2024 Partners BrochureDigital Finance Summit 2024 Partners Brochure
Digital Finance Summit 2024 Partners Brochure
 
Introduction to Indian Financial System ()
Introduction to Indian Financial System ()Introduction to Indian Financial System ()
Introduction to Indian Financial System ()
 
how to sell pi coins in Canada, Uk and Australia
how to sell pi coins in Canada, Uk and Australiahow to sell pi coins in Canada, Uk and Australia
how to sell pi coins in Canada, Uk and Australia
 
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...
 
what is the future of Pi Network currency.
what is the future of Pi Network currency.what is the future of Pi Network currency.
what is the future of Pi Network currency.
 
Economics and Economic reasoning Chap. 1
Economics and Economic reasoning Chap. 1Economics and Economic reasoning Chap. 1
Economics and Economic reasoning Chap. 1
 
The new type of smart, sustainable entrepreneurship and the next day | Europe...
The new type of smart, sustainable entrepreneurship and the next day | Europe...The new type of smart, sustainable entrepreneurship and the next day | Europe...
The new type of smart, sustainable entrepreneurship and the next day | Europe...
 
Falcon Invoice Discounting: Optimizing Returns with Minimal Risk
Falcon Invoice Discounting: Optimizing Returns with Minimal RiskFalcon Invoice Discounting: Optimizing Returns with Minimal Risk
Falcon Invoice Discounting: Optimizing Returns with Minimal Risk
 
Webinar Exploring DORA for Fintechs - Simont Braun
Webinar Exploring DORA for Fintechs - Simont BraunWebinar Exploring DORA for Fintechs - Simont Braun
Webinar Exploring DORA for Fintechs - Simont Braun
 
how to sell pi coins on Binance exchange
how to sell pi coins on Binance exchangehow to sell pi coins on Binance exchange
how to sell pi coins on Binance exchange
 
USDA Loans in California: A Comprehensive Overview.pptx
USDA Loans in California: A Comprehensive Overview.pptxUSDA Loans in California: A Comprehensive Overview.pptx
USDA Loans in California: A Comprehensive Overview.pptx
 
Latino Buying Power - May 2024 Presentation for Latino Caucus
Latino Buying Power - May 2024 Presentation for Latino CaucusLatino Buying Power - May 2024 Presentation for Latino Caucus
Latino Buying Power - May 2024 Presentation for Latino Caucus
 
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
 
Introduction to Economics II Chapter 28 Unemployment (1).pdf
Introduction to Economics II Chapter 28 Unemployment (1).pdfIntroduction to Economics II Chapter 28 Unemployment (1).pdf
Introduction to Economics II Chapter 28 Unemployment (1).pdf
 

Forex In Practice Lecture & Ch 19 & 20 (Final Modified Fall 2007

  • 1.
  • 2.
  • 3. Foreign Exchange Issues: International Trade and FDI Selected topics in lecture and selected topics from Chapter 10 (pages 357-361) Foreign Exchange Chapter 19 (pages 650-660) Accounting Chapter 20 (pages 681-682) International Financial Management
  • 4.
  • 5.
  • 6.  
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. Example of Pricing decision due to foreign exchange rate PASS-THROUGH WITH A REDUCTION IN PRICE
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33. Current U.S. Practice SOURCE: Eitman, David K., Stonehill, Arthur L., Moffet, Michael H. MULTINATIONAL BUSINESS FINANCE. Addison Westley: New York, 2001. p.92
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.