Exchange rates, Financial Management

Exchange Rates

The prices at which one country's currency can be changed into that of other country. Although perceptions in the currency markets of the privacy of a country's economic base certainly affect change rate movement, fluctuations are less a function of specific currency market manipulations than the outcome of an entire conglomerate of economic forces experienced on all over the world level, such as inflation rates, political unrest, interest rates, financial market aberrations, and commodity prices. Furthermore, currency rates respond violently to larger economic shocks: local wars, natural disasters, oil cartel maneuvers, and anticipated political and economic actions of the world powers. Within a worldwide economy such as the United States, change rates play a critical role in virtually every aspect of financial management. Organizations that import or export or that competes against industries that import or export should watch exchange rates closely and if mostly enter into futures currency contracts or trade in financial futures to maximize earnings potential.

Posted Date: 10/16/2012 6:25:23 AM | Location : United States







Related Discussions:- Exchange rates, Assignment Help, Ask Question on Exchange rates, Get Answer, Expert's Help, Exchange rates Discussions

Write discussion on Exchange rates
Your posts are moderated
Related Questions
Security returns are found to be less correlated across countries than within a country. Why can this be? Answer:  Security returns are less correlated possibly because countries

What are the Predator shareholders Predator company's shareholders mayn't approve the bid for various reasons. Reduction in EPS If consideration is

Financial accounting: Financial accounting attempts to establish the value of a particular organisation at a specific point in time, and its earnings over a specified period of

Describe the value maximisation criterion In applying the value maximisation criterion, term value is used in terms of worth to the owners, which is, ordinary shareholders. Cap

• Prepare a Trend Analysis for the Balance Sheet, Income Statement and Cash Flow Statement • This should include about 12 accounts in the Balance Sheet and about 10 Income Statemen

Explain the statement: “Exposure is the regression coefficient”. Answer: Exposure to currency risk can be suitably calculated by the sensitivity of the firm’s future cash flows a

Q. Application of concept of TVM Sometime the financial manager has to deal with the varying situation of the decision making where the concept of TVM needs to be applied in th

Directions: Use the information below to calculate the WACC and its components for Hawk Corp. WACC= (%CE)(cost of CE) + (%PE)(cost of PE) + (%D)(cost of D)(1-T)


The difference between the cost of attending a particular school and the expected family contribution, minus any other financial aid.