Posted inInternational Finance
Why is FDI Important?
FDI is an important source of externally derived finance that offers countries with limited amounts…
Posted inInternational Finance
FDI and its Types
Strategically, FDI comes in three types − ● Horizontal − In case of horizontal FDI, the company does all…
Posted inInternational Finance
FDI – Definition
FDI, in its classic definition, is termed as a company of one nation putting up…
Posted inInternational Finance
Balance of Payments
It is important to measure the performance of an economy. Balance of Payment (BOP) is one way to…
Posted inInternational Finance
Foreign Direct Investment
Foreign direct investment (FDI) is an important factor in acquiring investments and grow the local…
Posted inInternational Finance
Techniques to Reduce Economic Exposure
International firms can use five techniques to reduce their economic exposure − ● Technique 1 − A company can…
Posted inInternational Finance
Economic Exposure – A Practical Example
Suppose you own and rent out a condominium in Europe. A property manager recruited by…
Posted inInternational Finance
Regression Equation
Analysts can measure economic exposure by using a simple regression equation, shown in Equation 1. P…
Posted inInternational Finance
International Finance – Economic Exposure
Economic exposure is the toughest to manage because it requires ascertaining future exchange rates. However,…
Posted inInternational Finance
Hedging Translation Exposure
The above exhibit indicates that there is still enough translation exposure with changes in the…