Analysis of Firm Strategy with Respect to Foreign Exchange Rate Movement

As a result of business globalization, many multinational enterprises operating in different nations need to deal with foreign exchange exposure. Foreign exchange exposure comprises transaction, translation and economic exposures. Moreover, exposure to the foreign exchange movement alters a company’...

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Main Author: Hu, Xiangdong
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2010
Online Access:https://eprints.nottingham.ac.uk/23965/
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author Hu, Xiangdong
author_facet Hu, Xiangdong
author_sort Hu, Xiangdong
building Nottingham Research Data Repository
collection Online Access
description As a result of business globalization, many multinational enterprises operating in different nations need to deal with foreign exchange exposure. Foreign exchange exposure comprises transaction, translation and economic exposures. Moreover, exposure to the foreign exchange movement alters a company’s corporate revenue, profit and future cash flow. While many firms focus on transaction exposure, relatively few address economic exposure, altered market shares, sales and competitor actions. Thus, in this dissertation, the objective is to explore a firm’s strategy for managing the risk of foreign exchange movement in order to mitigate currency risk and protect corporate profit and value. The strategies explored include foreign exchange exposure hedging with financial derivatives, which is mostly done by firms. Further, the manner in which firms adopt operational and marketing strategies to deal with economic exposure, including operational diversification, operational cost reduction, internal operations and marketing choices, has been discussed.
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spelling nottingham-239652017-12-29T16:44:59Z https://eprints.nottingham.ac.uk/23965/ Analysis of Firm Strategy with Respect to Foreign Exchange Rate Movement Hu, Xiangdong As a result of business globalization, many multinational enterprises operating in different nations need to deal with foreign exchange exposure. Foreign exchange exposure comprises transaction, translation and economic exposures. Moreover, exposure to the foreign exchange movement alters a company’s corporate revenue, profit and future cash flow. While many firms focus on transaction exposure, relatively few address economic exposure, altered market shares, sales and competitor actions. Thus, in this dissertation, the objective is to explore a firm’s strategy for managing the risk of foreign exchange movement in order to mitigate currency risk and protect corporate profit and value. The strategies explored include foreign exchange exposure hedging with financial derivatives, which is mostly done by firms. Further, the manner in which firms adopt operational and marketing strategies to deal with economic exposure, including operational diversification, operational cost reduction, internal operations and marketing choices, has been discussed. 2010-12-31 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/23965/1/THESIS_FROM_HU_XIANGDONG-FINANCIAL_MBA.pdf Hu, Xiangdong (2010) Analysis of Firm Strategy with Respect to Foreign Exchange Rate Movement. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Hu, Xiangdong
Analysis of Firm Strategy with Respect to Foreign Exchange Rate Movement
title Analysis of Firm Strategy with Respect to Foreign Exchange Rate Movement
title_full Analysis of Firm Strategy with Respect to Foreign Exchange Rate Movement
title_fullStr Analysis of Firm Strategy with Respect to Foreign Exchange Rate Movement
title_full_unstemmed Analysis of Firm Strategy with Respect to Foreign Exchange Rate Movement
title_short Analysis of Firm Strategy with Respect to Foreign Exchange Rate Movement
title_sort analysis of firm strategy with respect to foreign exchange rate movement
url https://eprints.nottingham.ac.uk/23965/