1. Companies invest capital abroad to fill product gaps, produce more efficiently than domestically, and secure raw materials.
2. When making international capital budgeting decisions, firms estimate foreign cash flows, convert to dollars, and determine NPV using the domestic required rate adjusted for risk.
3. Exchange rate risk includes translation exposure from currency changes affecting financial statements, transactions exposure from currency changes between recording and settling transactions, and economic exposure from currency changes impacting future cash flows.
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Foreign currency transactions and financial instrumentsArthik Davianti
The slides present lecture on the topic foreign currency transaction. This topic discuss types of foreign currency transactions and their accounting procedures. Further in the discussion financial instruments generated as hedge strategy to foreign exchange transactions is also presented. The slides are intended for students of the subject of Advanced Financial Accounting
FOREIGN CURRENCY TRANSLATION : methods that are followed like : temporal method, current/non-current method, current rate method , monetary/non-monetary method and balance sheet exposure, foreign currency translation .adjustments.
Used for MBA professional accounting class room presentation and it includes FASB rules and forex currency dealings details for purchase and sale of goods and services with foreign party.
We buy and sell mutual funds.We read about mutual funds.
But do we know,What is a Mutual Fund?
Here is a presentation that will help you understand 'Mutual Funds' better.
Foreign currency transactions and financial instrumentsArthik Davianti
The slides present lecture on the topic foreign currency transaction. This topic discuss types of foreign currency transactions and their accounting procedures. Further in the discussion financial instruments generated as hedge strategy to foreign exchange transactions is also presented. The slides are intended for students of the subject of Advanced Financial Accounting
FOREIGN CURRENCY TRANSLATION : methods that are followed like : temporal method, current/non-current method, current rate method , monetary/non-monetary method and balance sheet exposure, foreign currency translation .adjustments.
Used for MBA professional accounting class room presentation and it includes FASB rules and forex currency dealings details for purchase and sale of goods and services with foreign party.
We buy and sell mutual funds.We read about mutual funds.
But do we know,What is a Mutual Fund?
Here is a presentation that will help you understand 'Mutual Funds' better.
" Managing working capital, financing the business, assessing
control of foreign Exchange and political risks and evaluating foreign
direct Investment."
MGMT 4710INTERNATIONAL BUSINESSUNIT 2 DISCUSSIONS Since DioneWang844
MGMT 4710
INTERNATIONAL BUSINESS
UNIT 2 DISCUSSIONS
Since the end of World War II, globalization of world markets has been increasing.
The main characteristics of globalization include free flow of goods and services
(International trade), and capital (foreign direct investments), less government intervention,
and regional and global integration. In addition, globalization is strengthened by cross-
national cooperation and institutions such as the World Trade Organization, the World
Bank and the International Monetary Fund. Globalization is supported by the argument
that international trade and foreign direct investments result in a better allocation of
resources.
In the last few years however, international trade and foreign direct investments
have been challenged as a growing number of governments have been questioning the
benefits of free flow of goods, services, and capital. In particular, the United Kingdom has
left the European Union (Brexit), the North American Free Trade Agreements (NAFTA)
has been revised, the United Stated is threatening to reduce or even eliminate its
contributions to international institutions. As a result, tariffs have started to rise, and
multinational enterprises are under increasing pressures to reduce their operations in
foreign countries and invest more in their home countries.
Question: Do you favor globalization of world markets?
Instructions:
-Your answer should be one single-spaced page or less (but at least 10 sentences). Also, cite inside your answer (e.g.: MacMillan, 2020) two recent articles (no older than 2018) from business periodicals such as Business Week, Forbes Magazine, Fortune Magazine, Wall Street Journal, Financial Times, or any other relevant popular press (no textbook, Wikipedia, or academic journal). At the end of your answer, provide complete references of both articles.
MGMK 4710
INTERNATIONAL BUSINESS
Chapter 9. GLOBAL FOREIGN EXCHANGE MARKETS
https://www.youtube.com/watch?v=jo4z26THnpo
I.
INTRODUCTION
Multinational enterprises (MNEs) do business in more than one country. Because countries
have different currencies (e.g. US dollar, Japanese Yen), MNEs will conduct transactions in
several currencies. This chapter (and the next chapter) will look at how companies handle the
complexities of dealing with multiple currencies.
II.
KEY CONCEPTS
- A currency is an instrument of payment in a country (e.g. US dollar) or grouping of countries
(e.g. Euro in most European Union countries).
- Foreign exchange is money denominated in the currency of another country (e.g. China has
more than US$2 trillion in reserve).
- Foreign exchange market is the place where currencies are traded. The foreign exchange
market is comprised of two segments:
+ The over-the-counter market (OTC) includes commercial banks, investment banks, and other financial institutions. The OTC is where most foreign exchange activity occurs
+ The exchange-traded market includes c ...
UNDERSTANDING WHAT GREEN WASHING IS!.pdfJulietMogola
Many companies today use green washing to lure the public into thinking they are conserving the environment but in real sense they are doing more harm. There have been such several cases from very big companies here in Kenya and also globally. This ranges from various sectors from manufacturing and goes to consumer products. Educating people on greenwashing will enable people to make better choices based on their analysis and not on what they see on marketing sites.
Characterization and the Kinetics of drying at the drying oven and with micro...Open Access Research Paper
The objective of this work is to contribute to valorization de Nephelium lappaceum by the characterization of kinetics of drying of seeds of Nephelium lappaceum. The seeds were dehydrated until a constant mass respectively in a drying oven and a microwawe oven. The temperatures and the powers of drying are respectively: 50, 60 and 70°C and 140, 280 and 420 W. The results show that the curves of drying of seeds of Nephelium lappaceum do not present a phase of constant kinetics. The coefficients of diffusion vary between 2.09.10-8 to 2.98. 10-8m-2/s in the interval of 50°C at 70°C and between 4.83×10-07 at 9.04×10-07 m-8/s for the powers going of 140 W with 420 W the relation between Arrhenius and a value of energy of activation of 16.49 kJ. mol-1 expressed the effect of the temperature on effective diffusivity.
"Understanding the Carbon Cycle: Processes, Human Impacts, and Strategies for...MMariSelvam4
The carbon cycle is a critical component of Earth's environmental system, governing the movement and transformation of carbon through various reservoirs, including the atmosphere, oceans, soil, and living organisms. This complex cycle involves several key processes such as photosynthesis, respiration, decomposition, and carbon sequestration, each contributing to the regulation of carbon levels on the planet.
Human activities, particularly fossil fuel combustion and deforestation, have significantly altered the natural carbon cycle, leading to increased atmospheric carbon dioxide concentrations and driving climate change. Understanding the intricacies of the carbon cycle is essential for assessing the impacts of these changes and developing effective mitigation strategies.
By studying the carbon cycle, scientists can identify carbon sources and sinks, measure carbon fluxes, and predict future trends. This knowledge is crucial for crafting policies aimed at reducing carbon emissions, enhancing carbon storage, and promoting sustainable practices. The carbon cycle's interplay with climate systems, ecosystems, and human activities underscores its importance in maintaining a stable and healthy planet.
In-depth exploration of the carbon cycle reveals the delicate balance required to sustain life and the urgent need to address anthropogenic influences. Through research, education, and policy, we can work towards restoring equilibrium in the carbon cycle and ensuring a sustainable future for generations to come.
Artificial Reefs by Kuddle Life Foundation - May 2024punit537210
Situated in Pondicherry, India, Kuddle Life Foundation is a charitable, non-profit and non-governmental organization (NGO) dedicated to improving the living standards of coastal communities and simultaneously placing a strong emphasis on the protection of marine ecosystems.
One of the key areas we work in is Artificial Reefs. This presentation captures our journey so far and our learnings. We hope you get as excited about marine conservation and artificial reefs as we are.
Please visit our website: https://kuddlelife.org
Our Instagram channel:
@kuddlelifefoundation
Our Linkedin Page:
https://www.linkedin.com/company/kuddlelifefoundation/
and write to us if you have any questions:
info@kuddlelife.org
WRI’s brand new “Food Service Playbook for Promoting Sustainable Food Choices” gives food service operators the very latest strategies for creating dining environments that empower consumers to choose sustainable, plant-rich dishes. This research builds off our first guide for food service, now with industry experience and insights from nearly 350 academic trials.
Natural farming @ Dr. Siddhartha S. Jena.pptxsidjena70
A brief about organic farming/ Natural farming/ Zero budget natural farming/ Subash Palekar Natural farming which keeps us and environment safe and healthy. Next gen Agricultural practices of chemical free farming.
Willie Nelson Net Worth: A Journey Through Music, Movies, and Business Venturesgreendigital
Willie Nelson is a name that resonates within the world of music and entertainment. Known for his unique voice, and masterful guitar skills. and an extraordinary career spanning several decades. Nelson has become a legend in the country music scene. But, his influence extends far beyond the realm of music. with ventures in acting, writing, activism, and business. This comprehensive article delves into Willie Nelson net worth. exploring the various facets of his career that have contributed to his large fortune.
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Introduction
Willie Nelson net worth is a testament to his enduring influence and success in many fields. Born on April 29, 1933, in Abbott, Texas. Nelson's journey from a humble beginning to becoming one of the most iconic figures in American music is nothing short of inspirational. His net worth, which estimated to be around $25 million as of 2024. reflects a career that is as diverse as it is prolific.
Early Life and Musical Beginnings
Humble Origins
Willie Hugh Nelson was born during the Great Depression. a time of significant economic hardship in the United States. Raised by his grandparents. Nelson found solace and inspiration in music from an early age. His grandmother taught him to play the guitar. setting the stage for what would become an illustrious career.
First Steps in Music
Nelson's initial foray into the music industry was fraught with challenges. He moved to Nashville, Tennessee, to pursue his dreams, but success did not come . Working as a songwriter, Nelson penned hits for other artists. which helped him gain a foothold in the competitive music scene. His songwriting skills contributed to his early earnings. laying the foundation for his net worth.
Rise to Stardom
Breakthrough Albums
The 1970s marked a turning point in Willie Nelson's career. His albums "Shotgun Willie" (1973), "Red Headed Stranger" (1975). and "Stardust" (1978) received critical acclaim and commercial success. These albums not only solidified his position in the country music genre. but also introduced his music to a broader audience. The success of these albums played a crucial role in boosting Willie Nelson net worth.
Iconic Songs
Willie Nelson net worth is also attributed to his extensive catalog of hit songs. Tracks like "Blue Eyes Crying in the Rain," "On the Road Again," and "Always on My Mind" have become timeless classics. These songs have not only earned Nelson large royalties but have also ensured his continued relevance in the music industry.
Acting and Film Career
Hollywood Ventures
In addition to his music career, Willie Nelson has also made a mark in Hollywood. His distinctive personality and on-screen presence have landed him roles in several films and television shows. Notable appearances include roles in "The Electric Horseman" (1979), "Honeysuckle Rose" (1980), and "Barbarosa" (1982). These acting gigs have added a significant amount to Willie Nelson net worth.
Television Appearances
Nelson's char
2. What is a company’s
motivation to invest capital
abroad?
Fill product gaps in foreign markets
where excess returns can be earned.
To produce products in foreign markets
more efficiently than domestically.
To secure the necessary raw materials
required for product production.
3. How does a firm make an
international capital budgeting
decision?
1. Estimate expected cash flows in the foreign
currency.
2. Compute their U.S.-dollar equivalents at the
expected exchange rate.
3. Determine the NPV of the project using the U.S.
required rate of return, with the rate adjusted
upward or downward for any risk premium
effect associated with the foreign investment.
4. Types of Exchange-Rate Risk
Exposure
Translation Exposure -- Relates to the change in
accounting income and balance sheet statements
caused by changes in exchange rates.
Transactions Exposure -- Relates to settling a particular
transaction at one exchange rate when the obligation
was originally recorded at another.
Economic Exposure -- Involves changes in expected
future cash flows, and hence economic value, caused by
a change in exchange rates.
5. Management of exchange rate risk exposure
Cash Management
What should a firm do if it knew that a local foreign currency was
going to fall in value (e.g., drop from $.70 per peso to $.60 per
peso)?
Exchange cash for real assets (inventories) whose value
is in their use rather than tied to a currency.
Reduce or avoid the amount of trade credit that will be
extended as the dollar value that the firm will receive is
reduced and reduce any cash that does arrive as quickly
as possible.
Obtain trade credit or borrow in the local currency so
that the money is repaid with fewer dollars.
6. Generally, one cannot predict the future exchange
rates, and the best policy would be to balance
monetary assets against monetary liabilities to
neutralize the effect of exchange-rate fluctuations.
A reinvoicing center is a company-owned financial
subsidiary that purchases exported goods from
company affiliates and resells (reinvoices) them to
other affiliates or independent customers.
Cash Management
7. International Financing Hedges
Commercial Bank Loans and Trade Bills
Foreign commercial banks perform essentially the same
financing functions as domestic banks except:
• They allow longer term loans.
• Loans are generally made on an overdraft basis.
• Nearly all major commercial cities have U.S. bank
branches or offices available for customers.
•The use of “discounting” trade bills is widely utilized in
Europe versus minimal usage in the United States.
8. International Financing Hedges
Currency-Option and Multiple-Currency
bonds
1. Currency-option bonds provide the holder with the
option to choose the currency in which payment is
received. For example, a bond might allow you to choose
between yen and U.S. dollars.
2. Currency cocktail bonds provide a degree of exchange-
rate stability by having principal and interest payments
being a weighted average of a “basket” of currencies.
3. Dual-currency bonds have their purchase price and
coupon payments denominated in one currency, while a
different currency is used to make principal payments.
9. Currencies and the Euro
Each country has a representative currency like the $
(dollar) in the United States or the ₤ (pound) in Britain.
On January 1, 1999, the “euro” started trading.
The euro is the common currency of the European
Monetary Union (EMU), which currently includes the
following 12 European Union (EU) countries:
Austria, Belgium, Finland, France, Germany, Gr
eece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, and Spain.
10. Currency Market Hedges
A currency option is a contract that gives the holder the
right to buy (call) or sell (put) a specific amount of a
foreign currency at some specified price until a certain
(expiration) date.
Currency options hedge only adverse currency
movements (“one-sided” risk). For example, a put option
can hedge only downside movements in the currency
exchange rate.
Options exist in both the spot and futures markets.
The value depends on exchange rate volatility.
11. Macro Factors Governing
Exchange-Rate Behavior
Purchasing-Power Parity (PPP)
1. The idea that a basket of goods should sell for
the same price in two countries, after exchange
rates are taken into account.
2. For example, the price of wheat in Canadian and
U.S. markets should trade at the same price
(after adjusting for the exchange rate). If the
price of wheat is lower in Canada, then
purchasers will buy wheat in Canada as long as
the price is cheaper (after accounting for
transportation costs).
12. International Trade Draft
The international trade draft (bill of exchange)
is a written statement by the exporter
ordering the importer to pay a specific amount
of money at a specified time.
Sight draft is payable on presentation to the
party (drawee) to whom the draft is
addressed.
Time draft is payable at a specified future
date after sight to the party (drawee) to
whom the draft is addressed.