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Posted inInternational Finance
Types of Exposure
Companies are exposed to three types of risk caused by currency volatility − ● Transaction exposure − Exchange rate…
Posted inInternational Finance
Exchange Rate Fluctuations
Exchange rate fluctuations affect not only multinationals and large corporations, but also small and medium-sized…
Posted inInternational Finance
Exchange Rate Forecast: Models
Some important exchange rate forecast models are discussed below. Purchasing Power Parity Model The purchasing…
Posted inInternational Finance
Exchange Rate Forecast: Approaches
The two most commonly used methods for forecasting exchange rates are − ● Fundamental Approach − This is a…
Posted inInternational Finance
Exchange Rate Forecasts
Economists and investors always tend to forecast the future exchange rates so that they can…
Posted inInternational Finance
Factors Affecting International Equity Returns
Macroeconomic factors, exchange rates, and industrial structures affect international equity returns. Macroeconomic Factors Solnik (1984)…
Posted inInternational Finance
Global Registered Shares (GRS)
GRS are a share that are traded globally, unlike the ADRs that are receipts of…
Posted inInternational Finance
American Depository Receipts (ADR)
An ADR is a receipt that has a number of foreign shares remaining on deposit…
Posted inInternational Finance
Yankee Stock Offerings
In 1990s, many international companies, including the Latin Americans, have listed their stocks on U.S.…
Posted inInternational Finance
Changes in Capital Markets
The driving forces of financial globalization have led to four dramatic changes in the structure…