The economic exposure is usually determined by two factors − ●      Whether the markets where the company…

Foreign asset or overseas cash flow value fluctuates with the exchange rate changes. We know…

One of the major benefits of Financial Globalization is that the risk of a "credit…

Consider a big U.S. multinational with operations in numerous countries around the world. The company’s…

Companies are exposed to three types of risk caused by currency volatility − ●      Transaction exposure − Exchange rate…

Exchange rate fluctuations affect not only multinationals and large corporations, but also small and medium-sized…

Some important exchange rate forecast models are discussed below. Purchasing Power Parity Model The purchasing…

The two most commonly used methods for forecasting exchange rates are − ●      Fundamental Approach − This is a…

Economists and investors always tend to forecast the future exchange rates so that they can…

Macroeconomic factors, exchange rates, and industrial structures affect international equity returns. Macroeconomic Factors Solnik (1984)…