1001 Lecture Notes - Lecture 2: Foreign Exchange Management Act, Foreign Exchange Risk, Foreign Exchange Market

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kapale799

21 Feb 2023

School

Swami Ramanand Teerth Marathwada University

Department

Management

Course

1001

Professor

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Document Summary

The foreign exchange market also called forex, fx, or currency market was one of the original financial markets formed to bring structure to the global economy. In terms of trading volume, it is, by far, the largest financial market in the world. Aside from providing a venue for the buying, selling, exchanging, and speculation of currencies, the forex market also enables currency conversion for international trade settlements and investments. Foreign exchange trading is a contract between two parties. The spot market is for the currency price at the time of the trade. The forward market is an agreement to exchange currencies at an agreed-upon price on a future date. Dealers buy a currency at today"s price on the spot market and sell the same amount in the forward market. That way, they have just limited their risk in the future. No matter how much the currency falls, they will not lose more than the forward price.

Related Questions

Which of the following factors is commonly considered when assessing alternative foreign markets?

a. current size of market

b. the potential size of market

c. competitive levels in market

d. the legal and political environment in market

e. all of the above

orchidworm510

The competitive threat that outsiders will enter a market is weaker when

A)financially strong industry members send strong signals that they will launch strategic initiatives to combat the entry of newcomers.

B)the industry is characterized by the lack of sizable scale economies and learning/experience curve effects.

C)the industry’s market growth is rapid.

D)there are more than 2 entry barriers.

E)buyers have little loyalty to the brands and product offerings of existing industry members.

taupekangaroo101

Chiltern Farms
“[T]he beautiful valley of Vyeboom nestled between the majestic Franschhoek Mountains and the
Theewaterskloof Dam is the home of Chiltern Farms, who since their establishment in 1954 have
been growing and packing fruit for the local and international market. From humble beginnings
over six decades ago the “Chiltern family” has grown the enterprise to a world class growing and
packing facility providing produce to the local and international market. This family run business,
which packed is first harvest of 50 boxes of apples in 1954, now packs 1.5 million cartons of pome
fruit (i.e., pears, nashi, quince) and 3000 tons of blueberries annually.
Ably run by a board of directors, headed by members of the Mudge family, strong executive
(EXCO) and skilled support teams the “Chiltern Family” along with their industry partners
Fruitways and Berryworld SA work together to grow, pack and distribute quality produce to clients
all over the world, and uphold the vision of Chiltern – an innovative agri-business striving to create
an extraordinary future.The packhouses, pome and berry, pack not only their own fruit, but also the produce of 17 other farmers from the surrounding area. The company’s mission statement “doing what’s right for the fruit and what’s right for the grower” ensures that the best value is extracted from each bin of fruit.

Define the following terms and provide an original example of each related to Chiltern Farms.

Supply Chain Management.
Lean Manufacturing.
Efficient Consumer Response.
Green Supply Chain Management.
Societal Supply Chain Management.

papayaprofessor

1001 Lecture Notes - Lecture 2: Foreign Exchange Management Act, Foreign Exchange Risk, Foreign Exchange Market

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