ECONOMIC EXPOSURE Saputo’s business is constantly affected by changes in the exchange rate as the majority of its business takes place outside of Canada. Due to the fact products and cash flows travel internationally, the company is exposed to economic exposures. Exchange exposure affects Saputo in many ways such as the cost of production and demand for their products. Transaction exposure affects Saputo when cash flows from foreign operations into Canada. Saputo is affected by translation exposure when foreign revenue is converted into Canadian dollars for its financial statements. Exchange Exposure Saputo has production plants in Canada, America, Argentina and Australia, and many of their products are sold on the international market. Due to the fact that products are sold internationally, exchange rates affect the end price of products in different countries. For example, many of the raw materials used in the Argentine plants, such as milk, is imported from Canada. Therefore, the exchange rate between Canada and Argentina affects the cost of raw materials for the Argentina plant. If the Canadian dollar appreciates against the Argentine peso, the cost of raw materials will increase for the production plant, and vice versa. When the cost of production increases, the selling price of a product …show more content…
is affected; this in turn will directly affect demand. Demand will also be affected if another country’s currency depreciates and their products become cheaper to purchase. Saputo produces dairy products which means that demand is relatively elastic due to the fact that dairy products are considered a commodity; meaning that if Saputo’s prices increase or if competitor’s price decreases, customers will purchase products from another brand. If Saputo’s costs increase due to the exchange rates, they have to increase their prices for customers, which may result in a decrease in demand. Transaction Exposure Saputo has debt in Canada, the United States, Argentina and Australia. Due to the fact that each loan is in a different currency, and the company’s financial position can change with the exchange rates. For example, if a Canadian production plant has loans from the US; the exchange rate between the two countries will affect the value of the plant’s liabilities. If the Canadian dollar depreciates against the US dollar, the Canadian dollar will be weaker and it will cost the Canadian production plant more money to pay off its bank loan. Translation Exposure Only about 34% of Saputo’s is domestic, so when Saputo is compiling their financial statements, their foreign debt, foreign loans and foreign values of inventory are all subject to changes in the exchange rate because all revenue must be converted back into Canadian Dollars.
For example, on March 30, 2015 the exchange rate between the Canadian and US dollar was $1.2690/US$, and on March 31, 2015 the exchange rate was $1.2677/US$. Due to the fact the US dollar appreciated against the Canadian dollar, the revenue recorded on the consolidated statements of earning would be at a higher value on March 31st than it would have been on March
30th.
Grady improves the health of the community by providing quality, comprehensive healthcare in a compassionate, culturally competent, ethical and fiscally responsible manner. Grady maintains its commitment to the underserved of Fulton and DeKalb counties, while also providing care for residents of metro Atlanta and Georgia. Grady leads through its clinical excellence, innovative research and progressive medical education and training.
Strengths for Duquesne University would be that it is nationally ranked number 115. This is a number that can beat many competitors and creates benefits for those that attend. Classes that have fewer than twenty students is 40.9% and classes that have fifty or more students is only at 9%.. (http://colleges.usnews.rankingsandreviews.com/best-colleges/duquesne-university-3258/rankings). Duquesne is located in Pittsburgh Pennsylvania and is known to be one of the top places to live in the country. Pittsburgh is considered the most livable and resilient. There is a young crowd that could be an interest for young adults, also this city is considered to be the third safest cities in the states (https://fitt.co/pittsburgh/pittsburgh-best-city/). Religious values are what many people look for to keep that connect they have with their beliefs, having these values instilled in the curriculum could be a benefit view for parents and students.
The real exchange rate tells us the rate at which we can trade the goods of one country for goods from other countries. The real exchange rate some- times referred to as the terms of trade. To view the exchange rate relationship in real terms using the nominal exchange rate, can be taken samples h a goods produced in some countries, such as cars. Suppose the price of the car with 25,000 dollars, while the price of Japanese cars is 4,000,000 yen . To compare the prices of both cars , we have to transform them into a common currency. If one dollar worth of 80 yen , the price of cars Americans to 80 x 25,000, or 2,000,000 yen. By comparing the price of an American car (2,000,000 yen) and the price of Japanese cars (4,000,000 yen), it can be concluded that the price of the American car is half the price of Japanese cars . In other words, pad a price effect we can swap two American cars to get a Japanese car . Peng count can be written as
U.S. takes 75 percent of the Canada’s total export, and the whole export accounts for 40 percent of Canada’s GDP. By analyzing data from Bank of Canada, the average exchange rate (CAD/USD) is 0.7648 in October 2015, and October’s number is higher than the previous two months, which are 0.7595 and 0.7538 (出处according to the “Trading Economics”) Moreover, Canada’s trade gap was enlarged from 2.32 billion to 2.76 from previous two months to October 2015. The total export was dropped by 1.8% and the main reason was lost a sale of 2.8% from the United Stated trading. Trace back to 2013, Canada’s exchange rate (CAD/USD) was 0.9977. We assume that if Canada undertook the fixed exchange rate at 0.9977, and executed the rate during depression, the situation of deficit would be even worse. So floating exchange rate helps economy to adjust disequilibrium in the balance of payment when the global market gets into a
If the IDR/CNY exchange rate will follow the fixed rate baseline assumptions the profitability of the company will increase and this will favor business. This means that the return on sales of China’s Noah would significantly increase on a yearly basis.
We pay close attention to exchange rates when making a decision. Depending on the exchange rate, we adjust how many shoes we will ship from our plants. If rates are better going from North America to another area than it would be coming from the Asia Pacific plant, we will use the North America plant to ship more shoes to those areas that have exchange rates that are more beneficial than shipping from the Asia Pacific plant. We also do the same thing with the Asia Pacific Plant; if exchange rates are more beneficial shipping to one location than another we will put more of our resources in those locations. Changing the number of shoes we ship from the different locations helps us to gain profit off of the exchange
For our paper, we obtained the Big Mac PPP exchange rate between the US Dollar and the Canadian Dollar, Japanese Yen, Pound Sterling and the Singapore Dollar. We first wanted to know what the exchange rate should be by taking the (current Exchange Rate)*(US Dollars per Burger / Local Currency per Burger). We then wanted to find out if the currency is over or under-valued according to our figures. We obtained this information by (Exchange Rate minus should be rate)/ (Should Be value from previous equation). If this percentage is positive then we believe the currency is over-valued. If this currency is negative then we believe the currency to be under-valued.
test whatever it's a bad effect or not. So when it used on humans, we
The appreciation of currency implies the loss in its value, in relation to the currency of another country, or several currencies. Market forces, which tend to increase the exchange rate, are responsible for the depreciation of the US dollar, which is the currency of focus in this discussion (Zhang). Whenever there is a depreciation recorded in terms of the US dollar, the value reduces such that one will require more US dollars to make a purchase of a unit of the other currency with which it is exchanging, such as the Euro. In the event of the depreciation of the US dollar in relation to the Euro, the US dollar’s competitiveness increases. The reason for this increased competitiveness is the fact that the price of the goods from the United States will appear cheaper to the nations that use the Euro such that the exports level will
This reflective essay will critically review my personal and professional skills that I am less confident in whilst in practise, which is essential for communication and developing effective relationships with others in an organization and even for personal development. The skills identified for improvement was highlighted in a skills audit for communication and effective relationships. A SWOT analysis was carried out to focus on the skills recognised, where finally an action plan was made to address how to improve the skills, what the challenges would be to develop them and how it is beneficial. The skills audit, SWOT analysis and the action plan are included as an appendices. It will also apply communication theories to
The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.
SWOT analysis A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation of an organization or individual requiring a decision in pursuit of an objective. It involves monitoring the marketing environment internal and external to the organization or individual. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from the Fortune 500 companies. 1 Performing the SWOT Analysis 2 Internal and External Factors 3 Examples 3.1 Strengths and Weaknesses 3.2 Opportunities and Threats 4 Errors to Be Avoided 5 Additional Uses of SWOT Analysis 6 References 7 External links Performing the SWOT Analysis SWOT analysis is part of the Harvard Policy Model, which has been developed as part of the business policy courses taught at the Harvard Business School since the 1920s.
Hyundai and Kia rely on exports for much of their sales. Consequently, they are vulnerable to shifts in exchange rates. When the won, the South Korean currency, ri...
Besides that, also important to consider there is the difference in shipping costs from different ports, as it will change the “landed cost” of the item, and the retail price and profit margin. Then, Problems encountered in international business larger and more complex than the problems faced in the domestic business. In example, the manager of an international organization decides to reduce costs and maximize the value-added. They must decide whether it is ethical to comply with all labor and environmental standards are found to be lower in less developed countries. In addition, they must decide which one foreign market to enter and should be avoided. The domestic business manager was not affected by this factor directly, but they will be affected by the economic downturn of international trade.
Bank of Baroda was established with a paid-up capital of Rs.10 lakh in 1908 in Baroda in Gujarat. After raising Rs.300 crs. through a bond issue in 1995, the bank tapped the capital market with an initial public offering of Rs.850 crs. in 1996.