国际商务 The Foreign Exchange Market.pptVIP

Learning Objectives Be conversant with the functions of the foreign exchange market. Understand what is meant by spot exchange rates. Appreciate the role that forward exchange rates play in insuring against foreign exchange risk. Understand the different theories explaining how currency exchange rates are determined. Understand the differences between translation, transaction, and economic exposure, and what managers can do to manage each type of exposure. Case: Hyundai and Kia Face a Strong Won In 2006, the won rose in value by 7% against the US dollar. Profits at Hyundai and Kia dropped