...Hedging is a risk management strategy used in limiting or eliminating chances of loss from uncontrollable changes in the prices of commodities, currencies, or securities. A hedge is an investment position that used to reduce potential losses that may be occur in an investment for an individual or an organisation. In short, hedging is a transfer of risk without buying insurance policies. Hedge funds are designed to reduce an investment risk while maintaining a good return on investment. Hedging refers to managing risk to an extent that makes it bearable. In international trade and dealings foreign exchange play an important role. Fluctuations in the foreign exchange rate can have significant impact on business decisions and outcomes. Many international trade and business dealings are shelved or become unworthy due to significant exchange rate risk embedded in them. Hedging uses various techniques, it involves taking equal and opposite positions in two different markets (such as cash and futures markets). A hedge can be constructed from many types of financial instruments, including forward contracts, future contracts, options, swaps, many other types of over-the-counter and derivative products. Forward Contracts Generally, the most prominent instrument used in hedging for exchange rate risk management is the forward contract. Forward contracts are customised agreements between two parties to fix certain condition such as the currency exchange rate, interest rate or...
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...Studieplan over engelsk eksamens materiale Forløb og tekster fra 1.G 1. Literature/fiction and film analysis * http://so1.cphwest.dk/kulturelle_materialer/Engelsk_kulturelle.pdf * Working with Fiction (dokumenter): Read "The New Girl" * Litterature: 'My Son the Fanatic * Film analysis (oral): 'Crash' * Literary analysis of short stories relating to racial diversity, immigration and general social issues etc. * Texts: Aline's journey, The New Girl; The First Day (US society; Racism; Social class in the US); 'Little Things' by Raymond Carver; 'My Son the Fanatic' by Hanif Kureishi (UK Area Study); First Confession by Frank O'Connor (Ireland: an introduction-Religion). Film analysis. * Subjects related to sporting, social, political and economic themes. Films: Green Street Hooligans (Sport+UK society); Crash (US society); Bloody Sunday by Paul Greengrass (UK - Nothern Ireland); Bowling for Columbine (Guns in America). 2. UK: Area study * “Two Speed Britain” (s.54-s.63) fra bogen;” What’s up, Britain” * Tekster fra Current magazien "Margaret Thatcher", "The Rise of UKIP", "The Weird Foods Brits Love", "Jack the Ripper Stalks London" og "London's East End" * “My Son the fantastic” * Waterboys sang ”Old England” 3. USA: Political, Society and culture * "Mapping where English is not the language at home" By Dan Keating and Darla Cameron: http://www.washingtonpost.com/wp-srv/special/national/us-language-map/ * Cadillac advert analysis:...
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...EFFECTS OF GLOBALIZATION NEGATIVE Globalization has various aspects which affect the world in different ways such as: It gives access to products which are not readily available, to various countries, for example coffee from Kenya to the UK and Netherlands, thus giving developing countries an opportunity to produce and sell goods that in return are able to make a better living. This is, however, debatable. Wealthier countries which purchase these goods make production and trade rules that developing countries must follow. This reduces fair chances in the world market place, meaning developing and some developed countries are losing out and not making as much profit as they probably could. Increased prosperity has gone hand in hand with mass poverty. Already obscene inequalities between rich and poor are widening. (Watkins, 2002) Developed countries outsource many manufacturing jobs that were previously done by their citizens to developing countries like India and China, because labor is significantly cheaper. Outsourcing refers to obtaining goods by contract from outside sources. This is a lose-lose situation, as the people in these developed countries lose out on jobs, while those in developing countries are ridiculously underpaid for their labor, giving rise to the issue of human rights. Working conditions in these working areas are poor, salaries for the workers barely covering their cost of living. Despite outsourcing of industries providing jobs to people in third world...
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...EXPORT STRATEGIES AVAILABLE TO FIRMS INTERNATIONALISING This report gives an insight into exporting, its definitions and other international business transactions, it goes on discussing the different strategies available to a firm internationalizing for the first time, and these include both direct and indirect strategies available, and provides examples of firms that use export strategies. It also gives the advantages and disadvantages of such strategies. At the end of the report it provides a conclusion and recommendations to what strategies a firm can adopt depending on the situation. 2.0 INTRODUCTION AND BACKGROUND The most conventional forms of international business transactions are international trade and investment. International trade refers to an exchange of products and services across borders. Exchange can be through exporting, importing or countertrade. Exporting is an entry strategy involving the sale of products and services to customers located abroad from the home base or third country. Importing is the buying of products abroad and bringing them to the home market. Countertrade is a business transaction where all or partial payments are made in kind rather than cash. Both finished and intermediate goods, such as raw materials and components are subject to trade. While on the other hand international investment refers to the transfer of assets to another country, or acquisition of assets in that country through foreign direct investment and contractual...
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...OFFICE USE ONLY AFF/AFW2401 Replacement Paper 24.5.07 Page 1 of 18 Monash University Semester One Examination 2007 Faculty of Business and Economics Department of Accounting and Finance EXAM CODES: AFF/AFW2401 TITLE OF PAPER: COMMERCIAL BANKING AND FINANCE EXAM DURATION: 3 hours READING TIME: 10 minutes THIS PAPER IS FOR STUDENTS STUDYING AT: (office use only - tick where applicable) Berwick Clayton Peninsula Distance Education Open Learning Caulfield Gippsland Sunway Hong Kong Other (specify) During an exam, you must not have in your possession, a book, notes, paper, calculator, pencil case, mobile phone or any other material/item which has not been authorised for the exam or specifically permitted as noted below. Any material or item on your desk, chair or person will be deemed to be in your possession. You are reminded that possession of unauthorised materials in an exam is a disciplinable offence under Monash Statute 4.1. AUTHORISED MATERIALS CALCULATORS YES NO (Permitted calculators: Citizen SRT-135, Casio FX82MS scientific calculator, the Casio FX82AU scientific calculator, and Sharp EL-735 financial calculator, or calculators with an 'approved for use' Faculty label) OPEN BOOK YES NO SPECIFICALLY PERMITTED ITEMS YES NO if yes, items permitted are: This paper consists of six (6) questions and one (1) formula sheet printed on a total of eighteen (18) pages. Answer Question 1 in the scriptbook provided. Answer all other questions in the...
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...directly linked to another country Discuss participants in the FX markets o FX dealers and brokers o Central banks – influence exchange rate, change composition of holdings of foreign currencies in managing official reserve assets, purchase foreign currency to pay government imports and interest on or redeem government debt o Firms conducting international trade o Exporters – sell foreign currency and buy AUD o Importers – buy foreign currency and sell AUD o Investors and borrowers in the international money markets and capital markets – investing overseas o Foreign currency speculators – anticipate future rates to make a profit o Arbitrageurs – no risk exposure; o Geographic – taking advantage of when two dealers in different locations quote different rates on same currency o Triangular – taking advantage of when 3 or more currencies are out of alignment Describe the functions and operations of FX markets o Operates 24 hrs a day o Typically the same rates globally (no arbitrage profits available) o Sophisticated global telecommunication systems utilised Outline instruments traded in FX markets o Spot transactions – set an exchange rate today for delivery and settlement in 2 business days o Forward FX transactions – set an exchange rate today for delivery and...
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...Centre for Pre-University Studies FRA/FRB FRA/FRB April Intake Semester 1 2015/2016 Lecture Notes Workbook FPIT1023 Information and Communication Technology Prepared By: chai li kuen, chang pei fah, chik soon leong Name of Student: ________________________________________ Class: ________________________________________ Name of Lecturer/Tutor: ________________________________________ *The contents are not for sale and strictly meant for internal circulation only. Main references supporting the course 1. Gary, B &Shelly 2012, Discovering Computers - Complete: Your Interactive Guide to the Digital World, Course Technology. 2. O’Leary, TJ & O’Leary, L I 2011, Computing Essentials, McGraw-Hill. Additional references supporting the course 1. Morley, D & Parker, CS 2013, Understanding Computers: Today and Tomorrow, 14th edn, Course Technology, Thomson Learning, United States. 2. Williams, BK, Sawyer, SC 2013, Using Information Technology,10th edn, McGraw-Hill. Chapter 1: Introduction to Computers Objectives Overview: * Define the term, computer, and describe the relationship between data and information * Describe the five components of a computer * Discuss the advantages and disadvantages that users experience when working with computers * Distinguish between system software and application software * Differentiate among types, sizes, and functions of computers in each category *...
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...Please write a short report on the advantages and disadvantages of international trade for the countries whose data you downloaded recently. You are required to illustrate your report with data and charts. I) Introduction: “The international trade is the exchange of goods, services and capital between countries” (Haekal, 2012). Trade exists for centuries but had known an international dimension with the globalisation. In this report, we will see some advantages and disadvantages of the international trade, through the examples of two countries: France and Italy. II) The advantages of trade: It exists many advantages to the international trade. We will see three of them, which are, meet the need of the country, create jobs and attract foreign investments in the country. 1) Meeting the need of the country: By open its economy to the world, a country...
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...serves the purpose to evaluate Amazon’s unique approach to service marketing which creates satisfied and loyal customer base and to estimate its international expansion. Amazon is one of the most customer oriented companies in the world, which is essential for e-tailor business as the competitor is only one click away. With its main focus on customer experience, it offers wide variety of merchandise, lowest price and convenience. This three ‘customer experience pillars’ supported by a foundation of innovation build the center of Amazon main strategy (Figure 1). Innovation Figure1: Amazon’s Customer Experience Pillars [5] Let’s have a closer look at each item: 1) The variety and availability of items on site is one of the biggest advantages of e-bookstore in over a regular one. Since there is no limit for shelf space it can offer not only top-sellers but also very unique slow-moving items. shipment within 24 hours. 2) The fairness and competitiveness of overall price is achieved by offering the lowest prices for the most popular products, with less popular products commanding higher prices and a Most of the company products are available for Convenience Selection Price greater margin for Amazon. Free shipping is offered for all orders over a certain amount of money and is used to encourage increase in basket size. 3) Customer convenience could be subdivided into: a) web site functionality or the ease of use of the site itself, which was achieved by such services...
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...FIN30014 Financial Risk Management Topic Outline, Reading and Tutorial Questions Semester 2, 2015 ------------------------------------------------- Topic 1: Introduction to Derivatives and Financial Risk Management ------------------------------------------------- Mechanics of Futures Markets Topic Outline * Financial risk management – an overview * The nature of derivatives and their uses for financial risk management * Futures exchanges and futures contracts * Over-the-counter markets and forward contracts * Uses of derivative contracts markets: Hedging, Speculation and Arbitrage * The mechanics of futures markets * opening and closing futures positions * the operation of margins on futures contracts * the role of the “Clearing House” * Futures contracts compared with forward contracts Essential Reading: Hull (2014) Chs. 1 & 2 Additional Reading: Viney, Ch 18, pp. 604 – 613; Ch 19, pp 636-648 Web Resources (Refer to the “External Links” tab on Blackboard) * Financial Pipeline: Derivatives Self-test Quiz Questions Hull Ch. 1: 1.2, 1.4, 1.7 Hull Ch. 2: 2.3, 2.4 (ignore tax questions), 2.5 Tutorial Questions Hull Ch. 1: 1.10, 1.11, 1.12, 1.18, 1.20, 1.21, 1.33 Hull Ch. 2: 2.10, 2.14, 2.16, 2.18, 2.25, 2.26, 2.28 Additional Questions 1. Suppose that on Jan. 4, 2011, an investor...
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...Introduction to Franchising Sponsored by: IFA EDUCATIONAL FOUNDATION © 2010 The IFA Educational Foundation. All Rights Reserved. No part of this book may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise), without the written permission of the publisher. IFA Educational Foundation, 1501 K Street, NW, Washington, DC 20005, (202) 628-8000, www.franchise.org. An Introduction to Franchising IFA EDUCATIONAL FOUNDATION Sponsored by: By Barbara Beshel CHAPTER 1 1. 2. 3. 4. 5. An Introduction to Franchising What is a franchise? What are common franchise terms? What are the alternatives to franchising? What are the advantages and disadvantages of owning a franchise? What are the legal issues in franchising? WHAT IS A FRANCHISE? A franchise is the agreement or license between two legally independent parties which gives: • a person or group of people (franchisee) the right to market a product or service using the trademark or trade name of another business (franchisor) • the franchisee the right to market a product or service using the operating methods of the franchisor • the franchisee the obligation to pay the franchisor fees for these rights • the franchisor the obligation to provide rights and support to franchisees FRANCHISE AGREEMENT FRANCHISOR FRANCHISEE Owns trademark or trade name Uses trademark or trade...
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...Introduction My 48 hour exam project is a case study of A. P. Møller – Maersk Group (Maersk); the objective of my assignment is to elaborate on Maersk`s talent management challenge, focused on development. Furthermore I will describe the cosmos of Maersk learning and competence development and provide alternative angles of conducting in this cosmos, in accordance with my own perspective. My ontological standpoint for this exam is constructivism (Olsen & Pedersen, 2005). The reality perceived is therefore not objective but created, or constructed, by man’s interpretation. This does not signify that I will avoid handling theories that are ontological objectivistic in order to discuss and compliment the various learning and competence development challenges of Maersk; but rather discuss the objective views and theories, and its contrasts to my standpoint. Organizational Change at Maersk Maersk have developed from a very standardized, family run company with certain and specific ways of running things; to a worldwide organization that have had to change in order to keep up with the time and trends. The major change in Maersk way of dealing with their learning and competence development occurred in 2008; Maersk had before 2008 a very objective approach to learning which were aimed towards trainees (Case, Page 7). In 2008 the People Strategy Sessions (PSS) is created and a shift towards a more individual development process has begun. PSS is developed to identify individuals...
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...e Finance Notes: Week 1 (Chapter 1) The Financial System Chapter Aims • Outline the functions of the Australian financial system • Identify the elements of the Australian financial system Overview of Financial Systems • A financial system facilitates financial transactions through the creation and transfer of financial assets • The key elements of the Australian financial system are □ Financial instruments □ Financial markets □ Financial institutions Functions of a Financial System • Facilitates the efficient flow of funds between lenders and borrowers via financial instruments • Allows individuals to allocate funds according to current and future consumption • Facilitates the implementation of government monetary policy Financial Instruments • Attributes of financial instruments □ Return or yield □ Risk □ Liquidity □ Time pattern of cash-flows 1. Equity □ Shares represent an ownership position □ An entitlement to share in the profits of the organisation □ Equity types – Ordinary shares – Preference shares – Quasi-equity instruments 2. Debt □ Debt instruments represent a contractual claim on the borrower to make specific payments in the form of interest and principal amounts □ Debt may be issued with a fixed or floating interest rate, or at a discount, secured or unsecured, short or long-term 3. Derivates □ Derivate instruments...
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... * Value in exchange- derive value from the exchange of that product for another good or service. Generic Value Chain Model: 1. 2. 3. 4. *Customer need identitified* 5. Identify the market and create the product/ service ( innovation cycle) 6. Build the product or service and deliver the product or service ( operations cycle) 7. Service the customer ( post sales service cycle) 8. * Customer need satisfied* Value Chain: 1. 2. 3. 4. Research and development 5. Design of product or service 6. Production 7. Marketinh 8. Distribution 9. Customer service Criticial success factors (CSF) Measures of those aspects of the firms performance essential to competitive advantage and succss Financial and no financial Depend on the...
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...ESSENTIALS of Financial Risk Management Karen A. Horcher John Wiley & Sons, Inc. ESSENTIALS of Financial Risk Management Essentials Series The Essentials Series was created for busy business advisory and corporate professionals. The books in this series were designed so that these busy professionals can quickly acquire knowledge and skills in core business areas. Each book provides need-to-have fundamentals for those professionals who must: Get up to speed quickly, because they have been promoted to a new position or have broadened their responsibility scope • • Manage a new functional area • Brush up on new developments in their area of responsibility • Add more value to their company or clients Other books in this series include: Essentials of Accounts Payable, Mary S. Schaeffer Essentials of Balanced Scorecard, Mohan Nair Essentials of Capacity Management, Reginald Tomas Yu-Lee Essentials of Capital Budgeting, James Sagner Essentials of Cash Flow, H. A. Schaeffer, Jr. Essentials of Corporate Performance Measurement, George T. Friedlob, Lydia L. F. Schleifer, and Franklin J. Plewa, Jr. Essentials of Cost Management, Joe and Catherine Stenzel Essentials of Credit, Collections, and Accounts Receivable, Mary S. Schaeffer Essentials of CRM: A Guide to Customer Relationship Management, Bryan Bergeron Essentials of Financial Analysis, George T. Friedlob and Lydia L. F. Schleifer Essentials of Financial Risk Management, Karen A. Horcher ...
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