CHAP 9 IBI by Nguyen Hoang Duong K17 HL https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s en-us 2022-11-01 06:48:21 UTC 2025-10-25 01:26:40 UTC hello@padlet.com Currency Convertibility duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2364988518 2022-11-01 14:09:58 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2364988518 Are All Currencies Freely Convertible? duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365001346 2022-11-01 14:17:20 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365001346 Freely convertible duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365004428 A country’s currency is said to be freely convertible when the country’s government allows both residents and nonresidents to purchase unlimited amounts of a foreign currency with it. ]]> 2022-11-01 14:19:06 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365004428 Externally convertible duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365014122 A currency is said to be externally convertible when only nonresidents may convert it into a foreign currency without any limitations. ]]> 2022-11-01 14:24:32 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365014122 Non-convertible duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365017226 A currency is non-convertible when neither residents nor nonresidents are allowed to convert it into a foreign currency.

]]> 2022-11-01 14:26:16 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365017226 Captial flight duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365025474 Countries limit convertibility to preserve foreign exchange reserves and prevent capital flight - when residents and nonresidents rush to convert their holdings of domestic currency into a foreign currency]]> 2022-11-01 14:30:47 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365025474 Countertrade duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365064580 When a country’s currency is nonconvertible, firms may turn to countertrade - barter like agreements by which goods and services can be traded for other goods and services

]]> 2022-11-01 14:53:08 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365064580 FOREIGN EXCHANGE RATE RISK duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365071620 2022-11-01 14:57:21 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365071620 Transaction exposure duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365074869 the extent to which the income from individual transactions is affected by fluctuations in foreign exchange values]]> 2022-11-01 14:59:20 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365074869 Translation exposure duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365076251 the impact of currency exchange rate changes on the reported financial statements of a company]]> 2022-11-01 15:00:10 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365076251 Economic exposure duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365077513 the extent to which a firm’s future international earning power is affected by changes in exchange rates]]> 2022-11-01 15:00:59 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365077513 Minimize Exchange Rate Risk duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365080983 2022-11-01 15:03:02 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365080983 Buy forward duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365082348 2022-11-01 15:03:50 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365082348 Use swaps duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365082983 2022-11-01 15:04:13 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365082983 Lead and lag payables and receivables duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365083781 2022-11-01 15:04:41 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365083781 Lead strategy duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365085025 attempt to collect foreign currency receivables early when a foreign currency is expected to depreciate and pay foreign currency payables before they are due when a currency is expected to appreciate]]> 2022-11-01 15:05:27 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365085025 Lag strategy duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365086309 delay collection of foreign currency receivables if that currency is expected to appreciate and delay payables if the currency is expected to depreciate]]> 2022-11-01 15:06:11 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365086309 Minimize transaction and translation exposure duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365092222 2022-11-01 15:09:40 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365092222 Reduce economic exposure duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365093914 2022-11-01 15:10:42 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365093914 Various location duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365096573 Distribute productive assets to various locations so the firm’s long-term financial well-being is not severely affected by changes in exchange rates]]> 2022-11-01 15:12:18 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365096573 Decentration duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365098535 Ensure assets are not too concentrated in countries where likely rises in currency values will lead to damaging increases in the foreign prices of the goods and services the firm produces]]> 2022-11-01 15:13:26 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365098535 In general, manager should duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365101019 2022-11-01 15:14:46 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365101019 duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365102151 Have central control of exposure to protect resources efficiently and ensure that each subunit adopts the correct mix of tactics and strategies]]> 2022-11-01 15:15:16 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365102151 duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365103865 Distinguish between transaction and translation exposure on the one hand, and economic exposure on the other hand]]> 2022-11-01 15:16:11 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365103865 duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365105065 Attempt to forecast future exchange rates]]> 2022-11-01 15:16:54 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365105065 duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365105981 Establish good reporting systems so the central finance function can regularly monitor the firm’s exposure position]]> 2022-11-01 15:17:26 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365105981 duongnhhs170100 https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365106902 Produce monthly foreign exchange exposure reports]]> 2022-11-01 15:17:59 UTC https://padlet.com/duongnhhs170100/wg4tb0l70i9j5h5s/wish/2365106902