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picture1_Business Ppt Templates 73532 | Chfx Item Download 2022-09-01 05-34-14


 154x       Filetype PPTX       File size 0.09 MB       Source: fac.ksu.edu.sa


File: Business Ppt Templates 73532 | Chfx Item Download 2022-09-01 05-34-14
in addition to understanding the operations of domestic financial markets a financial manager must also understand the operations of foreign exchange markets and foreign capital markets foreign exchange markets fx ...

icon picture PPTX Filetype Power Point PPTX | Posted on 01 Sep 2022 | 3 years ago
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  • In addition to understanding the operations of 
   domestic financial markets, a financial manager must 
   also understand the operations of foreign exchange 
   markets and foreign capital markets. 
  • foreign exchange markets(FX)
  • The foreign exchange market is the market in 
   which participants are able to buy, sell, 
   exchange and speculate on currencies
  • foreign exchange markets facilitate:
  - foreign trade 
  - the raising of capital in foreign markets
  - the transfer of risk between participants 
  - speculation on currency values. 
  • foreign exchange rate 
  • is the price at which one currency (e.g.,the U.S. dollar) 
   can be exchanged for another currency (e.g., Saudi 
   Riyal SAR) in the foreign exchange markets. 
  • If US company has a global business in Saudi, they 
   generate income in SAR and then the amount is 
   exchanged for US dollar.
  • the actual amount of U.S. dollars received on a foreign 
   transaction depends on the (foreign) exchange rate 
   between the U.S. dollar and the Riyal SAR.
  • Foregin Exchange transaction are exposed to 
   foreign exchange risk as the cash flows are 
   converted into and out of local currency. 
  • foreign exchange risk 
  • Risk that cash flows will vary as the actual 
   amount of U.S. dollars received on a foreign 
   investment changes due to a change in foreign 
   exchange rates. 
  • currency depreciation 
  • When a country’s currency falls in value 
   relative to other currencies, meaning the 
   country’s goods become cheaper for foreign 
   buyers and foreign goods become more 
   expensive for foreign sellers. 
The words contained in this file might help you see if this file matches what you are looking for:

...In addition to understanding the operations of domestic financial markets a manager must also understand foreign exchange and capital fx market is which participants are able buy sell speculate on currencies facilitate trade raising transfer risk between speculation currency values rate price at one e g u s dollar can be exchanged for another saudi riyal sar if us company has global business they generate income then amount actual dollars received transaction depends foregin exposed as cash flows converted into out local that will vary investment changes due change rates depreciation when country falls value relative other meaning goods become cheaper buyers more expensive sellers...

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