Here is the synopsis of our sample research paper on Easton Bell Inc., Dealing With Forgiven Currency Exchange Rate Risks. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 38 page paper looks at the value of hedging to reduce risks of foreign exchange rate fluctuations. Easton-Bell is a company that has a number of financial issues, including a low profit margin, a high level of debt and the majority of its finished goods being subject to exchange rate movements. The paper examines the company and its position in order to assess the risks and benefits of hedging and the approaches or tools which could be used for hedging, including forward contracts, futures, options and swaps. The use of hedging is considered in both theoretical terms and in the context of the company's current position. The bibliography cites 20 sources.
Page Count:
38 pages (~225 words per page)
File: TS14_TEeastonbell.rtf
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Unformatted sample text from the term paper:
Process 20 3.3 The Motivation to Hedge 26 3.4 Tools for Hedging 30 4. Impact of Hedging on the Accounts 34 5. Conclusion 37 1. Introduction International trade is becoming increasing
complex. There are many barriers falling that facilitate higher level of international trade at both ends of the supply chain making it more possible for companies to leverage potential benefits
such as comparative advantage. The practice for international trade has taken place for millennia, but it may be argued that it has only been in the latter half of the
twentieth century that complex international supply chains have become the norm. Numerous stakeholders will expect a firm to undertake some for of transnational or international trade, including shareholders who are
classified as the primary stakeholder for the purposes of the annual accounts (Elliott and Elliott, 2005), and customers in ever maturing markets who often actively seek out attractive forms of
differentiation. It is this context that many firms operate, undertaking actions to increase profit and meet stakeholder needs. Sports companies are some of those that have benefited from higher
level of media coverage, with brands that were once local becoming international when worn by sports stars, at the same time they are able to manage the supply chain to
obtain lower prices on the goods that they sell. A master of this has been Nike with the outsourcing strategy; the firm has basically become a marketing and sales company
creating a very interesting and efficient financial structure that has facilitated growth and reduced opportunity costs for the strategies followed by minimizing investment. However, Nike is an unusual case; other
companies have sought the same benefits within the supply chain through outsourcing agreements for sourcing the goods, but have failed to gain the cost advantage. Easton-Bell Sports is an
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