International_FinancialManagement_4国际财务管理课件.ppt

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1、1Chapter4MeasuringExposureToExchangeRateFluctuations2ObjectivesThischapterdistinguishesamongthreeformsbywhichMNCsareexposedtoexchangeraterisk:(1)transactionexposure,(2)economicexposure,and(3)translationexposure.Eachfirmdiffersindegreeofexposure.Afirmshouldbeabletomeasureitsdegreeofea

2、chtypeofexposureasdescribedinthischapter.Then,itcandecidehowtocoverthatexposureusingmethodsdescribedinthefollowingtwochapters.Thespecificobjectivesareto:3ObjectivesdiscusstherelevanceofanMNC’sexposuretoexchangeraterisk;explainhowtransactionexposurecanbemeasured;explainhoweconomicexpo

3、surecanbemeasured;explainhowtranslationexposurecanbemeasured.4IsExchangeRateRiskRelevant?PurchasingPowerParityArgumentExchangeratemovementswillbematchedbypricemovements.PPPdoesnotnecessarilyhold.5IsExchangeRateRiskRelevant?TheInvestorHedgeArgumentMNCshareholderscanhedgeagainstexchang

4、eratefluctuationsontheirown.Theinvestorsmaynothavecompleteinformationoncorporateexposure.Theymaynothavethecapabilitiestocorrectlyinsulatetheirindividualexposuretoo.6IsExchangeRateRiskRelevant?CurrencyDiversificationArgumentAnMNCthatiswelldiversifiedshouldnotbeaffectedbyexchangeratemo

5、vementsbecauseofoffsettingeffects.Thisisanaivepresumption.7IsExchangeRateRiskRelevant?StakeholderDiversificationArgumentWelldiversifiedstakeholderswillbesomewhatinsulatedagainstlossesexperiencedbyanMNCduetoexchangeraterisk.MNCsmaybeaffectedinthesamewaybecauseofexchangeraterisk.8IsExc

6、hangeRateRiskRelevant?ResponsefromMNCsManyMNCshaveattemptedtostabilizetheirearningswithhedgingstrategies,whichconfirmstheviewthatexchangerateriskisrelevant.9TypesofExposureAlthoughexchangeratescannotbeforecastedwithperfectaccuracy,firmscanatleastmeasuretheirexposuretoexchangeratefluc

7、tuations.Exposuretoexchangeratefluctuationscomesinthreeforms:TransactionexposureEconomicexposureTranslationexposure10TransactionExposureThedegreetowhichthevalueoffuturecashtransactionscanbeaffectedbyexchangeratefluctuationsisreferredtoastransactionexposure.Tomeasuretransactionexposur

8、e:projectthe