ECONOMIC EXPOSURE Saputo’s business is constantly affected by changes in the exchange rate as the majority of its business takes place outside of Canada. Due to the fact products and cash flows travel internationally, the company is exposed to economic exposures. Exchange exposure affects Saputo in many ways such as the cost of production and demand for their products. Transaction exposure affects Saputo when cash flows from foreign operations into Canada. Saputo is affected by translation exposure when foreign revenue is converted into Canadian dollars for its financial statements.
Exchange Exposure Saputo has production plants in Canada, America, Argentina and Australia, and many of their products are sold on the international market. Due to the fact that products are sold internationally, exchange rates affect the end price of products in different countries. For example, many of the raw materials used in the Argentine plants, such as milk, is imported from Canada. Therefore, the exchange rate between Canada and Argentina affects the cost of raw materials for the Argentina plant. If the Canadian dollar appreciates against the Argentine peso, the cost of raw materials will increase for the production plant, and vice versa. When the cost of production increases, the selling price of a product …show more content…
For example, on March 30, 2015 the exchange rate between the Canadian and US dollar was $1.2690/US$, and on March 31, 2015 the exchange rate was $1.2677/US$. Due to the fact the US dollar appreciated against the Canadian dollar, the revenue recorded on the consolidated statements of earning would be at a higher value on March 31st than it would have been on March
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Strengths for Duquesne University would be that it is nationally ranked number 115. This is a number that can beat many competitors and creates benefits for those that attend. Classes that have fewer than twenty students is 40.9% and classes that have fifty or more students is only at 9%.. (http://colleges.usnews.rankingsandreviews.com/best-colleges/duquesne-university-3258/rankings). Duquesne is located in Pittsburgh Pennsylvania and is known to be one of the top places to live in the country. Pittsburgh is considered the most livable and resilient. There is a young crowd that could be an interest for young adults, also this city is considered to be the third safest cities in the states (https://fitt.co/pittsburgh/pittsburgh-best-city/). Religious values are what many people look for to keep that connect they have with their beliefs, having these values instilled in the curriculum could be a benefit view for parents and students.
Amtrak is a state-owned, for profit, national railroad Company that provides efficient rail service both long and short distance transportation services. Being the primary provider of passenger-rail service in the U.S has a network that connects more than 500 cities and towns in 46 states. It offers long-distance and short-distance service corridors throughout nationwide operating daily, offering several choice of service class – first class sleeping car, custom class and economic services for different age groups with different travel needs. Amtrak receives federal funds to be used for their operating expenses. Its ridership and revenue growth have progressively increased in the past five-year successfully building relationships with the public and customers, recreating branding, and improving new services/quality, and it projects a continued growth in passenger revenue at about 4% per year with modest growth in passenger ridership (Exhibit C4.1, Page 245).
The real exchange rate tells us the rate at which we can trade the goods of one country for goods from other countries. The real exchange rate some- times referred to as the terms of trade. To view the exchange rate relationship in real terms using the nominal exchange rate, can be taken samples h a goods produced in some countries, such as cars. Suppose the price of the car with 25,000 dollars, while the price of Japanese cars is 4,000,000 yen . To compare the prices of both cars , we have to transform them into a common currency. If one dollar worth of 80 yen , the price of cars Americans to 80 x 25,000, or 2,000,000 yen. By comparing the price of an American car (2,000,000 yen) and the price of Japanese cars (4,000,000 yen), it can be concluded that the price of the American car is half the price of Japanese cars . In other words, pad a price effect we can swap two American cars to get a Japanese car . Peng count can be written as
Grady improves the health of the community by providing quality, comprehensive healthcare in a compassionate, culturally competent, ethical and fiscally responsible manner. Grady maintains its commitment to the underserved of Fulton and DeKalb counties, while also providing care for residents of metro Atlanta and Georgia. Grady leads through its clinical excellence, innovative research and progressive medical education and training.
To put it simply, the exchange rate is a price. As with any other market, price is determined by supply and demand. Whenever they are not equivalent, the exchange rate would change. However, the reality comes to be far more complicated.
For our paper, we obtained the Big Mac PPP exchange rate between the US Dollar and the Canadian Dollar, Japanese Yen, Pound Sterling and the Singapore Dollar. We first wanted to know what the exchange rate should be by taking the (current Exchange Rate)*(US Dollars per Burger / Local Currency per Burger). We then wanted to find out if the currency is over or under-valued according to our figures. We obtained this information by (Exchange Rate minus should be rate)/ (Should Be value from previous equation). If this percentage is positive then we believe the currency is over-valued. If this currency is negative then we believe the currency to be under-valued.
The appreciation of currency implies the loss in its value, in relation to the currency of another country, or several currencies. Market forces, which tend to increase the exchange rate, are responsible for the depreciation of the US dollar, which is the currency of focus in this discussion (Zhang). Whenever there is a depreciation recorded in terms of the US dollar, the value reduces such that one will require more US dollars to make a purchase of a unit of the other currency with which it is exchanging, such as the Euro. In the event of the depreciation of the US dollar in relation to the Euro, the US dollar’s competitiveness increases. The reason for this increased competitiveness is the fact that the price of the goods from the United States will appear cheaper to the nations that use the Euro such that the exports level will
One type of exchange risk faced by multinational companies is transaction risk. If a company sells products to an overseas customer it might be subject to transaction risk. If a UK company is expecting a payment from a US customer in June and the invoice was made in January, the exchange rate is bound to have changed during the period. If the deal was worth £1,000,000 and the american dollar compared to pound sterling weakened from US$1.40 in January to US$1.50 in June, the UK company would loose £47,619 (Appendix A).
We pay close attention to exchange rates when making a decision. Depending on the exchange rate, we adjust how many shoes we will ship from our plants. If rates are better going from North America to another area than it would be coming from the Asia Pacific plant, we will use the North America plant to ship more shoes to those areas that have exchange rates that are more beneficial than shipping from the Asia Pacific plant. We also do the same thing with the Asia Pacific Plant; if exchange rates are more beneficial shipping to one location than another we will put more of our resources in those locations. Changing the number of shoes we ship from the different locations helps us to gain profit off of the exchange
This reflective essay will critically review my personal and professional skills that I am less confident in whilst in practise, which is essential for communication and developing effective relationships with others in an organization and even for personal development. The skills identified for improvement was highlighted in a skills audit for communication and effective relationships. A SWOT analysis was carried out to focus on the skills recognised, where finally an action plan was made to address how to improve the skills, what the challenges would be to develop them and how it is beneficial. The skills audit, SWOT analysis and the action plan are included as an appendices. It will also apply communication theories to
The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.
Besides that, also important to consider there is the difference in shipping costs from different ports, as it will change the “landed cost” of the item, and the retail price and profit margin. Then, Problems encountered in international business larger and more complex than the problems faced in the domestic business. In example, the manager of an international organization decides to reduce costs and maximize the value-added. They must decide whether it is ethical to comply with all labor and environmental standards are found to be lower in less developed countries. In addition, they must decide which one foreign market to enter and should be avoided. The domestic business manager was not affected by this factor directly, but they will be affected by the economic downturn of international trade.
Bank of Baroda was established with a paid-up capital of Rs.10 lakh in 1908 in Baroda in Gujarat. After raising Rs.300 crs. through a bond issue in 1995, the bank tapped the capital market with an initial public offering of Rs.850 crs. in 1996.