Page 179 - DMGT549_INTERNATIONAL_FINANCIAL_MANAGEMENT

International Financial Management

Notes 3. How should a MNC reduce its foreign exchange risks?
4. Briefly discuss the rules regarding accounting for foreign exchange in India.
5. What is economic exposure? How do you measure it?
6. How can you manage economic exposure? Give the marketing and production initiatives
of managing economic exposure.
7. Discuss the determinants of economic exposure.
8. Compare the three types of exposure: translation, transaction and economic.

9. Differentiate between transaction and economic exposure.

Answers: Self Assessment

1. Netting 2. Fluctuations
3. Future 4. Interest
5. Currencies 6. Expectations

7. Promotional 8. Product
9. Employee 10. Production
11. Active 12. Accuracy
13. Low Risk: Low Reward 14. Unhedged
15. Yields

10.8 Further Readings

Books Apte, P.G. International Financial Management, Tata McGraw Hill Publishing
Company Limited, New Delhi.
Shapiro Allan C, Multinational Financial Management, Prentice Hall, New Delhi.

Bhalla, V.K. International Financial Management, Anmol Publishers.
Eun/Resnick, International Financial Management, Tata McGraw Hill Publishing
Company Limited, New Delhi.

Online links http://athene.mit.csu.edu.au/~hskoko/subjects/fin340/lect05.pdf
http://club.ntu.edu.tw/~ntuib/contents/course/irg-answer/ch11.pdf
http://finance.wharton.upenn.edu/~bodnarg/courses/nbae/IFM/Chapter9.pdf

http://www.cob.unt.edu/firel/TRIPATHY/f5500/Lecture%20Notes/Eun%20
and%20Resnick/f55%20ER%20Ch09%20Economic%20Exposure.pdf

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