tailieunhanh - Lecture Multinational financial management - Topic 5: Exchange rate systems and the effects of revaluation

In this chapter, students understand and can recall | Topic #5: Exchange Rate Systems and The Effects of Revaluation L. Gattis The Pennsylvania State University Finance 407: Multinational Financial Management 1 Review 2 The spot euro is selling for $ – . The 9-month forward points are 342 / 355. How many euros would you receive for $100 for a 9-month delivery? Learning Objectives 3 Learning Objectives Students understand and can recall The advantages and disadvantages of alternative systems for the determination of exchange rates The effects of appreciation and depreciation on consumers and business. How exchange rates are determined within fixed rate, floating, and managed float systems. The causes and effects of the major currency crises 4 DXY “Dollar” Index (98-12) EURUSD (98-12) Currency Crisis 5 A currency crisis is a rapid and disruptive exchange rate change– usually a devaluation. Often caused by geopolitical or economic shocks the reduce the demand for investment in that country Often | Topic #5: Exchange Rate Systems and The Effects of Revaluation L. Gattis The Pennsylvania State University Finance 407: Multinational Financial Management 1 Review 2 The spot euro is selling for $ – . The 9-month forward points are 342 / 355. How many euros would you receive for $100 for a 9-month delivery? Learning Objectives 3 Learning Objectives Students understand and can recall The advantages and disadvantages of alternative systems for the determination of exchange rates The effects of appreciation and depreciation on consumers and business. How exchange rates are determined within fixed rate, floating, and managed float systems. The causes and effects of the major currency crises 4 DXY “Dollar” Index (98-12) EURUSD (98-12) Currency Crisis 5 A currency crisis is a rapid and disruptive exchange rate change– usually a devaluation. Often caused by geopolitical or economic shocks the reduce the demand for investment in that country Often associated by the failure of a fixed exchange rate system in which rates were held unnaturally high or low by governments Rapid Devaluations Most often in Emerging and Frontier Markets Short-run Effects Spike in the cost of imports (oil, medicine, technology, food) Rapid reduction in foreign investment as firms avoid depreciating currencies and instability Sharp increase in the cost to repay foreign-denominated loans (emerging market governments and companies often borrow in dollars and euros) Often associated with government layoffs to reduce budget deficits due to increased debt costs and reduced tax revenues Long-run: inflation (due to import costs) and increase in “cheaper” exports (self correcting mechanism) Poll: Currency Winners and Losers 6 Who are the most likely winners in an appreciating dollar environment (depreciating foreign currency)? American Exporters to ROW American Outsourcers to ROW? American Tourist in Europe Foreign Tourists in America? 7 Exchange Rate Systems The

• Tài chính doanh nghiệp
• Financial management
• Multinational financial management
• Quản lý tài chính
• Quản lý tài chính đa quốc gia
• Multinational finance
• Exchange rate systems
• Financial statement
• International trade transactions
• Fundamentals of financial management
• Financial statement analysis
• International financial management
• Exchange rates
• Financial environments
• Overview of Financial Management and the Financial Environment
• The financial environment
• Forms of business organization
• Determinants of stock pricing
• Financial instruments
• Practical financial management
• Financial background
• Financial statements
• Financial planning
• Financial system
• Financial ratio
• IT financial management
• Setting the scene
• IT financial management maturity
• Parameters influencing IT financial management
• Costs of IT financial management
• More quantifiable benefits
• Overview of roles
• Hospitality financial management
• Hospitality industry management
• Analysis of financial reports
• Analyzing financial statements
• Management decision making
• Foundations of financial management
• Review of accounting
• Financial analysis
• Financial forecasting
• The financing decision
• Financial leverage
• Current asset management
• Paper F7
• Revision kit 2016
• Management Financial
• Financial Management Exam Review
• Review of Financial Management
• Study text 2016
• Lecture Multinational financial management
• International financial reporting standards
• Foreign exchange risk management
• Financing decisions
• Investment decisions
• Role of management
• International cash management
• Cash flow analysis
• Centralized cash management
• Intermediate financial management
• Financial options
• Corporate valuation
• Corporate governance
• Financial markets
• Cash flow
• Analysis of financial statements
• Ratio analysis
• Interest rates
• Financial institutions
• Forecasting sales
• Business environment
• Limited liability company
• Common size analysis
• Statement analysis
• Break even analysis
• Break even point