Fe Hedging Gm Essay Example

Fe Hedging Gm Paper Macs hedge foreign exchange rate risk? Multinational firms hedge foreign exchange risk In order to ensure operational and financial functionality. A NC should hedge foreign exchange risk so It can prevent cash flow effects of the foreign firm and the decline in value of the equity holder because of the movements in exchange rates. It will also help them to reduce transaction costs when obligated to make payments in different currencies, and it offers companies better ways to analyze and evaluate different operations by making absurdity comparison easier. Companies can better manage future foreign investments and have better control of capital management needs. Exhibit 2 and Exhibit 3 show the importance of hedging in Gems case. If not, what are the consequences? If so, how should they decide which exposure to hedge? If a NC does not hedge It might end up with its cash flow being volatile, and intense volatility In foreign exchange may distort the cash flow. A companys cash flow from operations can be stable but exchange losses or gains will affect the net Income tenement and the shareholders equity. As foreign currency risks affect companies income statements and balance sheet accounts which is called translation exposure, companies need to focus on the managing of foreign currency risk given their industry related necessities, operations tolerance to volatility, and according to their contractual agreements with clients and creditors. Foreign currency risk might also affect companies existent obligations and agreements denominated in foreign currencies along, eventually affecting firms earnings and cash flow which is called ramifications exposure. We will write a custom essay sample on Fe Hedging Gm specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Fe Hedging Gm specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Fe Hedging Gm specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Besides considering transaction and translation exposure, a company should also consider impacts in prospective revenue and expenses, earnings and cash flow, equity and enterprise value which Is called operating exposure. Thus, companies should decide to hedge their exposure according to the volatility of each exposure category and use either passive or active hedging strategies. What do you think of Gems foreign exchange hedging polices? Would you advise any changes? As it is mentioned in the case itself GM s current foreign exchange policies re in place to meet three major objectives: to reduce cash flow and earnings volatility , to minimize management time and costs associated with FAX management , and to align FAX policy with how Gm operates its core businesses GM currently only chooses to hedge cash flows, or transaction exposures, and does not manage balance sheet, or translational, exposures . Their foreign risk exposure spins mainly around their domestic currency (SUDS) against fluctuations of the Canadian Dollar,Japanese Yen and Argentina Peso. With their passive policy, they edge only 50 of commercial or operating exposures on a regional level. Their hedging policies should consider hedging on a Global Perspective instead of a Regional Basal silence tenet quadrilles operate In multiple territories around t world. And even though each subsidiary might have its own mission statement and objectives, not considering global implications Just because of that matter could translate in substantial risk. Because the company relies much on passive hedging approaches since its abandonment of actively managed risk management decisions. Therefore, I would suggest integration of active strategies considering the expected results and actual outcomes between actively and passively managed strategies. Should GM deviate from its policy in hedging its CAD exposure? Why or Why not? I think they should deviate from its policy in hedging its CAD exposure to account for the balance sheet effect. If GSM deviates from its policy for its Cad exposure, they may increase options in its hedge. It would allow GM to sell buy call/options to counter the effects of the hedge.

What Not to Buy When Giving Gifts in China

What Not to Buy When Giving Gifts in China While giving a gift is much appreciated in Asian countries as everywhere, there are some gifts that are absolute no-nos in China, Hong Kong, and Taiwan.   In these countries, politeness, in particular, polite language, is an important part of gift-giving. It is always polite to give gifts at festivities, or when youre attending special celebrations such as a wedding or housewarming, visiting the sick, or attending a dinner with people one doesnt know well. Some gifts have subtle meanings associated with the name or the pronunciation of the name. You wouldnt want to remind a sick person about death or funerals, nor would you want to hint to people youve never met that you never  want to see them again. Here are some gifts which have names with subtle linguistic impoliteness. Avoid these Chinese gift-giving blunders. Gifts with Subtle Meanings 1. Clocks Clocks of any type should be avoided because é€ Ã© Ëœ (sà ²ng zhÃ… ng, send clock) sounds like é€ Ã§ µâ€š (sà ²ng zhÃ… ng),  the funeral ritual. Clocks also symbolize the truth that time is running out; therefore, giving a clock is a subtle reminder that relationships and life have an end.   2. Handkerchiefs To give a handkerchief to someone (é€ Ã¥ · ¾, sà ²ng jÄ «n) sounds like æâ€" ·Ã¦   ¹ (dungÄ“n), a farewell greeting. This gift is especially inappropriate for a boyfriend or girlfriend - unless you want to break up. 3. Umbrellas Offering your friend an umbrella may seem an innocent gesture; however, its subtle meaning is that you want to end your friendship with him or her. If it is raining and you are worried he or she will get wet, it is better for both of you to huddle under your umbrella until you reach your friend’s destination. Then, take the umbrella back home with you. 4. Gifts in Sets of Four Gifts in sets of four are not good because å›› (sà ¬, four) sounds like æ ­ » (sÇ , death). 5. Shoes, Particularly Straw Sandals Giving shoes é€ Ã©Å¾â€¹Ã¥ ­  (sà ²ng xià ©zi, give shoes) sounds similar to break up. Also giving two shoes sends the message that you want the person to go his or her separate way; thus, ending your friendship. 6. Green Hats A green hat is a metaphor in Chinese Ã¥ ¸ ¶Ã§ ¶  Ã¥ ¸ ½ (di lÇÅ" mo, with green hat) that means that a man’s wife is unfaithful. Why green? A turtle is green and turtles hide their heads in their shells, so calling someone a ‘turtle’ will get you in trouble because its like calling the person a coward. Gifts Which Explicitly Refer to Funerals or Break-ups 7. Towels Towels are gifts which are usually given out at funerals, so avoid giving this gift in other contexts. 8. Sharp Objects Like Knives and Scissors Giving sharp objects that are used to cut things suggests that you want to sever a friendship or relationship. 9. Cut Flowers Particularly Yellow Chrysanthemums/White Flowers Yellow chrysanthemums and white flowers of any kind are used at funerals, so giving white flowers is synonymous with death. 10. Anything in White or Black These colors are often used during funerals so presents, wrapping paper and envelopes in these colors should be avoided.

Introduction to Accounting and Finance Essay Example | Topics and Well Written Essays - 1000 words - 1

Introduction to Accounting and Finance - Essay Example Hair wax refers to products of hair styling utilized to make a definition of hair into chunks or textual pieces. This would in turn aid in manipulating hair into numerous styles. However, to would be retailers or users, it is vital to realize that everything and in this context- every product, has its merits and demerits alike. Some of the merits in association with hair wax is that different products of hair styling based on wax can help come up with similar styles as well as give a similar shine to that of mousse or gel. However, the persons who utilize the hair wax products will have their hair remain in a state of pliability contrary to the effects identifiable with mousses and gels which have an end impact of having the hair remain in a state of stiffness. Hair wax products are recommended since they allow persons who use the same to restyle and fix hair simply by running fingers through the hair, and it is possible over the whole day subsequent to application. (thehairthread.com, 2011) Normally, hair wax is obtained from soft solids unlike hair gel. These soft solids are obtainable naturally such as bee wax or other wax blended products. However, unlike hair gel, hair wax is not as common. Hair gels’ application are with the inclusion of curly hair, women usage, men usage, long hair gels’ usage among others. On the contrary, hair wax is always recommended for short or medium hair length but it is bound to fail on long hair. (besthairwax.net, 2011) Note that hair wax is a product for hair styling that functions best upon messy type of hair and it is also helpful in achieving flicks as well as layered hair defining. It smoothes and aids in twisting short types of locks and also good for hair strands separation. (thehairstyler.com, 2009) Hair wax is mostly used but not restricted to men and this is since it is more advisable for short cuts such as buzzcuts, and flattops. It is also recommendable for