Here is the synopsis of our sample research paper on International Expansion. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 6 page paper that discusses several issues. The forward currency market and the foreign exchange market are briefly explained. The paper discusses issues for consideration by product development managers, such as international risks. How corporations finance their expansions and foreign direct investment are discussed. Bibliography lists 8 sources.
Page Count:
6 pages (~225 words per page)
File: MM12_PGfnxce.RTF
Buy This Term Paper »
Unformatted sample text from the term paper:
Inc., 2008). No money is transferred until the settlement date, i.e., the date of the contract. The forward or futures currency market is relatively small, accounting for only about 7
percent of the foreign exchange market (Tokiwa Investment Inc., 2008). The value of any currency can increase or decrease. In the futures market, an offer is made to buy
or sell a currency at a specific price. By doing this the institution is attempting to lock in a price for the currency, thus, reducing the risk of currency value
fluctuations. The foreign exchange market is categorized into two tiers, wholesale and retail (Tokiwa Investment Inc., 2008). The wholesale market, which accounts for about 98 percent of the market, is
an informal network of about 1,000 banks, currency brokerage firms and foreign exchange dealers who make transactions with each other and with some major corporations (Tokiwa Investment Inc., 2008). Commercial
banks account for more than 70 percent of transactions. Some of the top currency traders are: Deutsche Bank, UBS, Citigroup, HSBC, Barclays, Merrill Lynch and J.P. Morgan Chase (Tokiwa Investment
Inc., 2008). Contrary to what some people may believe, there is "no single trading center" (Tokiwa Investment Inc., 2008). When developing products for an international market, managers need to
consider various risks. Transaction exposure risk is described as the risk associated with the cost and revenue in terms of a change in currency exchange rates (South-Western/Thomson Learning, 2004). Translation
exposure risk is associated with conversion of the companys assets and liabilities from their own currency to the domestic currency where the business is being conducted (South-Western/Thomson Learning, 2004). Economic
exposure risk has to do with the value of the firm and/or a product changing as a result of a change in exchange values (South-Western/Thomson Learning, 2004). Aside from
...