...Investment Research General Market Conditions 18 October 2010 Research China Fighting a defensive war In the militaristic language of the currency war, important battles are looming ahead in connection with the G20 meetings. China will, in our view, be fighting a defensive war and will make a tactical retreat in order to avoid a devastating war that it might have to fight alone and where everybody loses in the end. Hence, China will probably maintain current momentum in the appreciation of the yuan in the coming months to convince its G20 partners that it is fulfilling its promise from the previous G20 meeting to gradually increase the yuan’s ‘flexibility’. The outcome of the G20 meetings is unlikely to be a comprehensive agreement with a firm commitment from China and other Asian countries to let their currencies appreciate in a co-ordinated fashion, even though this would be the most positive outcome for the global economy. The current inflation in China and the weak US dollar suggest that China will let the yuan appreciate by about 7% annually. We expect a large part of this appreciation to be front-loaded in the next three months to maximise the political payoff for China. The market currently discounts a 3.5% appreciation over the next 12 months. Hence the appreciation pace of the yuan is expected to be substantial in the coming months. It will probably be enough to ease political tensions between the US and China and will prevent punitive legislation against...
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...an rupee AN ASSIGNMENT ON FLUCTUATIONS IN INDIAN CURRENCY AND ITS IMPACTS SUBMITTED TO: Professor Harshit Shah SUBMITTED BY: Amber A Maheshwari (NR12070) SUBMITTED ON: 19th September 2013 INTRODUCTION TO EXCHANGE RATE MECHANISM: All economies that interact with international economy can be broadly classified into three categories on the basis of exchange rate policy of the country. 1) FIXED EXCHANGE RATE: These economies peg the value of their currency with some other prominent currency like US dollar. This system is simple and provides stability to the economy (of course, if the economy of the country to whose currency its currency is pegged is stable). This type of exchange rate regime is maintained by generally smaller economies like Nepal and Bhutan (pegged to Indian Rupee) or several African nations. Rational behind such regime is that in case of small economy – if the exchange rate is market determined – the sudden influx or out flux of even relatively small amount of foreign capital will have large impact on exchange rate and cause instability to its economy. Notable exception is China which despite being large economy has its currency pegged to US dollar. 2) FLOATING (OR FREE) EXCHANGE RATE: Bigger and developed economies like US, UK, Japan etc generally let market determine their exchange rate. In such economy exchange rate is determined by demand and supply of the currency. For example consider exchange rate of US dollar versus Japanese Yen...
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...Research Proposal Impact of Oil Price Fluctuation on the Macro Economy Von Lamey Eastern New Mexico University December 3, 2013 Table of Contents Introduction……………………………………………………………………3 Review of Literature…………………………………………………………..5 Theory…………………………………………………………………………15 Application…………………………………………………………………….18 Summary & Conclusion……………………………………………………….20 Tables…………………………………………………………………………..22 Bibliography……………………………………………………………………24 1. Introduction Oil price fluctuations have affected the people and economies of the U.S. for most of the twentieth century. The commodity has seen minor changes and major fluctuations during this period. Major price changes within a short timeframe are called shocks. The research I propose will attempt to answer the question: What is the impact of changing oil prices on the macro economy of a country? Research has demonstrated oil price fluctuations do impact economies as well as supply of and demand for the commodity. This influence on macroeconomic activity generated symmetric movement between price and many macroeconomic indices in the 1970's. However, after 1982, macroeconomic indices did not demonstrate the same proclivity to react to oil price movement. Information spreads almost instantly with the emergence of the internet. This expedient movement of news has led to an evolving trend of speculation which may or may not be beneficial to commodity pricing. One may infer that the recent prevalence...
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...The Colonial Era and Family Fluctuations In the colonial era women were limited to certain occupations and duties. There were some regional differences in the women and families, but the women were similar in most ways during the colonial era. Women had large families and spent most of their time tending to the children, house work and the farming at times to support their family. As the years progressed women evolved. Women were giving more freedom and independence. With freedom and independence came social classes that families and women were put into according to social and economic status. The American Industrial revolution was a big boom in American history and it effected everyone men and women. Life was changing. To establish a thriving settlement the Virginia Company officials of London imported women into the colony. The Virginia Company wanted to ensure that Virginia would prosper and plantations grow (Student Guide/ History 211,2004 p.8). Women learned that men were the head of the house hold and they were to be silent and so as her husband wanted. Women continued to learn the role thought out their lives. Young girls also learned this by watching their mother remain silent and do as she was told by her husband. In the colonial era women did not defying a man they could be taking to court and persecuted for that crime or for less. “These women also found out their marriage portions would be inferior to those of their brothers” (America: A Concise History 4th edition...
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...DIVIDEND POLICY AND ITS IMPACT ON SHARE PRICE (ANALYSIS OF SELECTED “A” CLASS LISTED COMPANIES) Submitted By Bijendra Bahadur Malla Roll No.: 740090 Reg. No: 2007-2-22-0056 A Research Report Submitted To Prof. Dr. Prem Raj Pant Apex College Pokhara University In partial fulfillment of requirements for the course on Research Methodology For the degree of Master of Business Administration Kathmandu August, 2009 ACKNOWLEDGEMENTS This Study has been under taken to analysis the “Dividend Policy and its Impact on Share Price (Analysis of selected “A” Class Listed Companies)” under partial fulfillment of the requirement of MBA degree. The thesis mainly covers the dividend policy and its impact on share price of “A” class listed companies of Nepal. I would like to express my deep gratitude to Professor Dr. Prem Raj Pant, for his kind support, advice and continuous support for the thesis writing. I would like to express my deep greet to my respected supervisor, Mr. Pushpa Raj Joshi and Mr. Bharat Singh Thapa for his continuous guidance and supervision. The report in this form is the result of their inspiring and invaluable guidance and supervision. I express sincere thanks to all librarians of Apex College who helped me directly and indirectly in the course of review of literature. Finally, I would like to thank my family and friends for their help, blessings, love and support for me to prepare for the thesis writing. ........…….……........ Bijendra Bdr. Malla ...
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...TOPIC 2 – Explain the various factors that may cause fluctuations in foreign exchange rates. In the case of Australia, what industries are vulnerable when the foreign exchange rate is high? Explain your answer fully. An exchange rate is the measure of value of one currency against another currency; for example, AUD $1 = USD $1.03 (indirect quotation). Exchange rates are dynamic in that they are changing throughout every trading day. Basically, fluctuation is caused by demand and supply of the currency. As in any market, price rises with shortages of supply and increases in demand. Price falls with reduced demand and increased supply. Figure 1.1 Demand curve The demand curve for Australian currency shows the quantity of Australian Dollar (AUD) that buyers are willing to purchase at each possible exchange rate. Demand arises from several sources * Exports – Foreigners who wish to buy Australian goods and services * Foreign tourists and international students in Australia * Australians firms borrowing abroad * Foreigners investing in Australia (capital inflow, e.g. assets, dividends etc) * Current transfers into Australia * Speculators who expect the value of AUD to rise The curve is downward sloping (Figure 1.1 – blue) since it is reasonable to expect that the cheaper the price of the local currency, the greater would be the demand for the currency by the rest of the world. Supply Curve (red) Supply curve for Australian currency shows the quantity of AUD...
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... U.S. Economic Situation When it comes to explaining The Fiscal and Monetary Policy and Economic Fluctuations, there are many variables to take into account. Looking at how the United States has been on this long recovery since the recession starting in 2007 all the way up to this point, the economic situation has gone from bad to ok. In discussing the economic situation as opposed to 5 years ago, one could truly argue that even though the situation was not the best to say the least, the United States is looking better and better when it comes to the economy. In October 2009 the unemployment rate in America was 10 percent, or that was the peak of it. It had not been that bad in America since late 1982, early 1983. In July 2009 the number of job openings declined to a series low of 2.1 million, unemployment reached a recent low of 129 million in February 2010. By 2012 it had increased to over 132 million and seemed to be rising, little did anyone know that things would soon take a turn for the better. Economists were predicting outrageous numbers for the next few years before things would even begin to get better, and they too were wrong in that prediction. Business cycles differ from economic fluctuations. As much as some market observers would prefer, economic fluctuation is a fact of life. Economic fluctuations are generated by shifts in specific economic data that affect limited facets of the economic picture. (http://www.ehow.com/info_1...
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...1. INTRODUCTION The term “Exchange rate” is referred to as the value of the money of one country compared to the money of another country exchange rate movement is therefore the fluctuation in the value of a country’s currency when compared to another country at particular time period. The importance of foreign exchange rate on inflow of foreign private investment has been traced by Obadan (1994) who noted that its importance as the center pieces of the investment environment derives from the argument that a sustained exchange rate misalignment in terms of over-valuation or under-valuation is a major source of macro economics disequilibrium which spells danger for investment. A stable exchange rate encourages, foreign and local investor into such an economy. This is because, an over-valued exchange rate discourage export and negatively affect the foreign private investment Salako (2004). Further state that there is a long run equilibrium relationship between investment inflow to Nigeria and variables such as nominal effective exchange rate. A high foreign exchange rate increase the prices of goods and services and discourage exportation while at the sometime encourages importation of goods which are cheaper. This has negative effect on the investment and with such factors investors withdraw their money from such an economy (Solomon, 2012). It is therefore imperative to state that foreign exchange rate is a significant factor that determines investment in...
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...What implication do fluctuations in foreign exchange rates have on the pricing decisions of export marketing managers? Globalization is no longer an abstraction but a stark reality that virtually all firms, large and a small, face. Firms that want to survive in the 21st century must confront all encompassing force that pervades every aspect of business. However, exchange rate fluctuation is an issue that affects the decisions marketing managers make about pricing. Management faces different decision situations, depending on whether currencies in key markets have strengthened or weakened relative to the home country currency. If the home country currency is weakened this would be an opportunity as exchange would be in a favourable position. A producer in a weak-currency country can choose to cut export prices to increase market share or maintain its prices and reap healthier profit margins. When revenues are translated into home country, the returns would be substantial. On the other hand it is a different situation when a company’s home currency strengthens, management would see this as unfavorable for exportation as overseas revenues would be reduced when translated to home country currency. Management in making there decision must consider currency fluctuation even though the degree of exposure varies among companies. In an example, Honda is heavily dependent on the North American market, which accounts for more than half of its operating income. In trying to reduce currency...
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...Causes of Erratic Oil Price Fluctuations on a Global Scale Crude oil is a significant commodity that has a far-reaching global economic impact. This is mostly because it is used as a primary raw product for extracting various forms of energy, such as diesel, petrol, and kerosene. The products extracted from crude oil are used in the various facets of human life. For instance, diesel is a crucial component used in manufacturing facilities (Mankiw 115-133). There are constant fluctuations in oil prices, making the price of a barrel of crude oil vary on a minute-by-minute scale. Fluctuations in fuel prices can be a primary factor in the cost of transportation and manufacturing to name but a few. Therefore, fluctuations in the price of crude oil have constant effects on the global economy. These effects have made many investors and citizens alike to be wary of any fluctuations (Butcher 45-77). Oil price fluctuations are bad for the global economy. High crude oil prices contribute to a higher cost of living, thereby affecting national and global economic performance. The question then begs; what is the cause of the erratic crude oil price fluctuations in global scale? There are various reasons as to why there are frequent fluctuations in crude oil prices. In particular, just crude oil production itself can cause major fluctuations in crude oil prices. For instance, reduced production would create shortage of crude oil in the market, and following microeconomics principles;...
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...Othman Yeop Abdullah Graduate School of Business Graduate Universiti Utara Malaysia BDFM 7053 GLOBAL ECONOMIC THEORY AND ISSUES UUM-Rezzen KL Third Semester May Session 2013/2014 Prof Dr. K. Kuperan Viswanathan SHORT PAPER #1 INTERDEPENDENCE OF WORLD FINANCIAL MARKETS AND FOREIGN EXCHANGE FLUCTUATIONS Submitted by: ZAHARIN BIN ALI MATRIC No. 95906 June 14, 2014 Short Paper #1 Page |2 1. INTRODUCTION With the increase in advancements in transportation and communications made possible by technology, the world has seen exponential growths in economic ties among all nations. In the last few decades, globalization has resulted in a rapid surge in the interchanging of goods and services reaching across further and faster beyond national borders, whilst increasing the interconnectedness of different markets and cultures. These economic ties come in the forms of international trade, foreign direct investment and monetary integration, made possible with the complementary increase in the interdependence of international financial markets. With further liberalization and deregulation, financial market interdependence grew in momentum alongside the worldwide capital mobilization. This growing interconnectedness of all the world financial markets and the degree of their interdependence have themselves created a subject of substantial interest among economists. The recent global financial crisis has only elevated this interest further, as the impact of U.S. subprime...
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...Techno-Fundamental Approach to build an Equity Portfolio and Study of Price Fluctuations with volume SIP project report submitted in partial fulfilment of the requirements for the PGDM Program By Chetan Arora 2010065 Supervisors Mr. Kartikeye Vatsa Deputy Manager (Financial Analyst) Dr. Gajavelli V S Professor Institute of Management Technology, Nagpur Institute of Management Technology, Nagpur 2010 - 2012 1 ACKNOWLEDGEMENTS I am sincerely grateful to Punjab National Bank for providing an opportunity to do an internship under its umbrella. This Summer Internship is a necessary component towards fulfilment of the requirements of the Post Graduate Diploma in Management (PDGM) program that I am currently undergoing from Institute of Management Technology, Nagpur. Having undergone the Summer Internship from one of India‘s most prestigious and respected institution, and India‘s second largest treasury division, has indeed been a learning, rewarding and pleasurable experience for me. I also want to express my gratitude and sincere thanks to my project guide Mr. Kartikeye Vatsa, Deputy Manager (Financial Analyst), Treasury Division and his senior Mr Rajan Ravat, Chief Manager, Treasury Division for constantly guiding and supervising my project. This project would not have been possible without their support and motivation. I would also like to thank Mr. Rajesh Bhagat, Manager, Treasury Department for their unending help in understanding the work culture at Punjab...
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...ARTIKEL PENELITIAN OUTREACH PROGRAM KEGIATAN I-MHERE UNSRAT BANTUAN PENYELESAIAN STUDI (STUDENT GRANT) TAHUN 2010 STUDI FLUKTUASI KEBUTUHAN OKSIGEN KIMIAWI PADA BEBERAPA SALURAN PEMBUANGAN DI KELURAHAN WENANG UTARA DAN KELURAHAN WENANG SELATAN YANG BERMUARA KE TELUK MANADO Oleh : Mustika Kelana Tarigan/99 053 188 ABSTRAC Mustika Kelana Tarigan. 99 053 188. Chemical Oxygen Demand Fluctuations Studies On Some Points Disposal in North Wenang Village and South Wenang Village into the Bay of Manado. Under the direction of Ir. James J.H. Paulus, M. Si and Sandra O. Tilaar, S.Pi., M.Sc. All of organisms need oxygen no exception organisms that live in the water. Aquatic life like fish, get the oxygen in the form of dissolved oxygen. In the absence of dissolved oxygen at certain levels many kinds of aquatic organisms will not survive in the water. Many aquatic organisms can not survive even be dead in an already polluted waters is not caused by contaminants toxicity directly, but can occur due to lack of oxygen because oxygen is used in the process of destruction of contaminants, both biological and chemical reactions. Bay of Manado is the waters that interact with the activities on the mainland, where all the waste from the mainland, both originating from urban settlements as well as those sourced from the industrial area of trade, restaurants and hotels will go into drainage channels and brought to shore. Waste in coastal waters and marine ecosystems will dissolve...
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...1. INTRODUCTION The term “Exchange rate” is referred to as the value of the money of one country compared to the money of another country exchange rate movement is therefore the fluctuation in the value of a country’s currency when compared to another country at particular time period. The importance of foreign exchange rate on inflow of foreign private investment has been traced by Obadan (1994) who noted that its importance as the center pieces of the investment environment derives from the argument that a sustained exchange rate misalignment in terms of over- valuation or under-valuation is a major source of macro economics disequilibrium which spells danger for investment. A stable exchange rate encourages, foreign and local investor into such an economy. This is because, an over-valued exchange rate discourage export and negatively affect the foreign private investment Salako (2004). Further state that there is a long run equilibrium relationship between investment inflow to Nigeria and variables such as nominal effective exchange rate. A high foreign exchange rate increase the prices of goods and services and discourage exportation while at the sometime encourages importation of goods which are cheaper. This has negative effect on the investment and with such factors investors withdraw their money from such an economy (Solomon, 2012). It is therefore imperative to state that foreign exchange rate is a significant factor that determines investment...
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...Chapter 1 Pages: 1.0 Introduction…………………………………………………………….1 1.1 Background…………………………………………………………….2 1.2 Statement of the study…….………………………………………........2-4 1.3 Objective of the study..................................................................…........4 1.4 Research questions……………………………………………...…...5-11 1.5 Research hypothesis………………………….……………………........12 1.6 Significance of the research……………….……………………………12 Chapter 2 2.0 Literature review………………………………………………..……….13 Chapter 3 3.0 Research design………………………………………………………..17 3.1 Study population……………………………………………………….17 3.2 Scope of the study……………………...………………………………17 3.3 Sample and sampling techniques……….………………………………17 3.4 Methods of data collection……………………………………………...18 3.5 Methods of data analysis………………………………………………..18 3.6 Time schedule…………...………………………………………………19 3.7 Financial budget………...……………………………………………….20 3.8 Bibliography…………..…………………………………………………21 Chapter 1 1.0 Introduction. The value of money depends upon price level of commodities. When the price level rises, the value of money decreases and this may also be opposite. The changes in the value of money can affect different sections of the community. For instant, when the price level goes up, businessmen, industrialists and peasants gain, but fixed...
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