Nobody downloaded yet

FINAL EXAM - Essay Example

Comments (0) Cite this document
Summary
This operational strategy minimized the company’s anticipated net dollar inflows.
Operational strategies and financial market instruments are both…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
FINAL EXAM
Read TextPreview

Extract of sample
"FINAL EXAM"

Download file to see previous pages They are less important for managing or hedging against short-term exposures because demand uncertainty is always lower in the short term. In addition, operational hedging is likewise less crucial for commodity-based firms that face price rather than quantity uncertainty. Financial instruments are greatly used by forms to hedge against short-term exposures while operational hedges are used greatly to hedge against long term exposures.
The foreign currency cash flows of firms that have plants both in foreign and domestic location are not independent of the exchange rate. And therefore, optimal financial hedging policy should entail forward contracts as well as foreign currency put and call options. Natural hedges helped MNCs to offset unexpected fluctuations in foreign currency exchange rates especially operational hedges that are associated with geographical diversification. Operational hedging often compliments financial hedging. For instance, MNCs use financial derivatives to mitigate risks exposures while they are operationally hedged, geographically diversified. Financial instruments are used to reduce the basic component of profit variability while geographical diversifications (operational hedges) can reduce firm-specific risk exposures. The use of both financial derivatives and operational hedges improves firm value. Operational hedges are not perfect substitutes for financial risk management.
In the case of CARREFOUR S.A., Carrefour used financial market instruments, Forward contract, to hedge against their foreign currency borrowings in order to maintain total debt requirements at 97% in Euros.
MNCs often use both parallel loans and currency swaps to achieve a similar objective. For instance, they provide a cheaper form of debt because they easily borrow in their respective countries and then swapping the debt. Both parallel loans and currency swaps helps the MNCs in ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“FINAL EXAM Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
FINAL EXAM Essay Example | Topics and Well Written Essays - 2500 words. Retrieved from https://studentshare.org/finance-accounting/1685173-final-exam
(FINAL EXAM Essay Example | Topics and Well Written Essays - 2500 Words)
FINAL EXAM Essay Example | Topics and Well Written Essays - 2500 Words. https://studentshare.org/finance-accounting/1685173-final-exam.
“FINAL EXAM Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/finance-accounting/1685173-final-exam.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Final exam
... Questions Compare and contrast the effectiveness of survey and ethnography research as a strategy of data collection. If you have to perform one or another what would be the most appropriate sampling technique you would follow? Why? Research is a source of answers to various questions that we ask in our everyday lives. It is a significant source of information if it is executed well. It is a process in which measurements are taken of organizations or individuals, and the resulting data is subjected to analysis and interpretation. Usually, research aims to provide an accurate answer to the posed research question by using the various research methods. According to Green and Dixon (1), the foundation of research is evidence... Questions...
6 Pages(1500 words)Essay
Final Exam
... Questions and Answers The benefits of knowing more than one language are quite many but the most important one is the ability to interact with different people from different cultures. Application of this advantage is found in international jobs where some employees employ bilingual or multilingual individuals. Knowledge of another language apart from the mother tongue usually confers competitive advantage on an individual when applying for a job. This is because the world has become globalized and the business world deals with clients from all over the globe hence necessitating the need for more than one language knowledge. In this regards, one is assured of job security because of knowing another language. Knowledge of another... Questions ...
4 Pages(1000 words)Assignment
Final exam
... Question (A) A memo To Chief Executive Officer, Cummings Inc From Consultant 30/04 Subject : Impact of Opportunities and Challenges presented by China and India to the development of Cumming, Inc China and Indian economies are commanding the world market today. The awakening of these two Asian tigers has taken the world in a storm. It is no doubt or arguable that every nation is following on their footsteps. Go anywhere, even in the remotest parts of Africa, and you will find one or two products from China and India. These Asian economies enjoy a number of natural and artificial factors. These factors have positioned both China and India at a far much better place to benefit from the idea of globalization. The goodwill portrayed... Question...
8 Pages(2000 words)Essay
Final Exam
... submitted History and Political Science Introduction Jose Ortega y Gasset wrote a famous book, The Revolt of the Masses,which represents his most fundamental deliberations concerning European integration. The work tries to characterize the consequences of Revolt regarding political unification of Europe. This paper highlights on numerous issues surrounding the work of Ortega. This book served many people in different nations, however, its effects was greatly felt for European supranational unity. To some extent, Ortega’s work is controversial in Spain and many other nations. In Spain, it highlighted on the controversy over the alleged elitism of Revolt and the French did not welcome Ortega’s reasoning or philosophical views... submitted...
4 Pages(1000 words)Essay
Final exam
...in navigating the essay. For instance, in the fourth paragraph, I wrote: “After discussing Witty’s article, the paper explores Calhoun’s text…” (5). Through these transitions, I prepared readers on what they will expect next, by connecting every paragraph to the thesis and the past paragraph. Moreover, within each paragraph, I made use of the right conjunctions to ensure the smooth flow of my ideas. To illustrate, I used the words “moreover” and “also” to connect these claims that support each main point. These transitions sentences helped me organize my ideas and ensured consistency in presenting and arguing my thesis. The final strength of the essay is its clear description of the photo’s meaning and implications to...
3 Pages(750 words)Essay
Final Exam
... The Green Move Company: Legal and Ethical Issues A1. The new product being produced at Green Move is a hazard to theusers of the product (Sheerow 15). The Zero Pedal accelerates dangerously once exposed to high temperatures for four consecutive hours. The fact that the person you are replacing was fired after he told his bosses about the defect shows that your revealing this defect could cost me my job. On the other hand however, exposing my customers to such a risk is illegal because if one of them dies during cycling, then they shall sue the company. This is not to mention the fact that human life is more precious than the zero pedals. The board has proved to be rather rigid when dealing with this matter. Whichever way I look... The Green...
10 Pages(2500 words)Essay
Final Exam
...1. Supporters contend the Sabanes-Oxley Act of 2002 was necessary and has played a useful role in restoring public confidence in the nation’s capital markets by, among other things, strengthening corporate accounting controls. Opponents claim it has reduced America’s international competitive edge against foreign financial service providers, saying SOX has introduced an overly complex regulatory environment into U.S. financial markets (Gale, n.p.). It does not seem fair that senior executives take individual responsibility for the accuracy and completeness of corporate financial reports. Although the act adds responsibility for the chief executives it benefit’s the public shareholders and protects them from unethical business... Supporters...
7 Pages(1750 words)Essay
Final exam
... fit with new recruits” (Fisher, 2007). Employment Interviews The selection committee would call the candidates for the interviews, who would pass the written tests. The interviews would help the company determine confidence of the candidates along with their verbal and nonverbal communication skills. Issuance of Appointment Letters This would be the last stage of the employee selection process. The selection committee would analyze all aspects of every candidate’s performance and would send the summary of each candidate’s performance to the higher authorities along with the recommendation letters. Finally, the HR department would send appointment letters to the selected employees. Training Issue - Priority No. 5 Training is one...
5 Pages(1250 words)Essay
Final Exam
... Final Exam What is your moral responsibility, if any, as a citizen of an affluent nation toward alleviating severe poverty in the world? In extreme poverty, individuals from affluent nations have the ability to save people in situations that are life threatening due to absolute poverty. By donating fifteen cents, they can help a child in extreme poverty get oral rehydration salts that could save its life while a twenty-five cent donation could purchase antibiotics for respiratory infections. Individuals from affluent nations have the lifestyle that gives them the capacity to give much more than these fifteen or twenty five dollars. Just as, one is obligated morally to save a child from drowning, the capacity to help people... war...
2 Pages(500 words)Essay
Final Exam
...Final Exam: Essay Questions Question Norton Long focused on public administration particularly the administrative power. Long argued that power is a very essential element in administration and this power is the force behind administration’s existence. In his work, Power and Administration, Long posits that administrative institutions including public agencies and bureaus are involved in a battle for political survival (Stillman 2010, p.97). For instance, the bureaucrats struggle for limited power resources from interest groups and others to sustain their organizations. Long argues further that the attainment, maintenance, increase and decrease of power are very important aspects that people cannot neglect. According to Long... Exam: Essay...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic FINAL EXAM for FREE!
Contact Us