article - BARSHA SHRSETHA FIN 446 Article one Corporate...

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BARSHA SHRSETHA FIN 446 Article one: Corporate Foreign exchange practices weather global crisis According to the report based on 2008 and 2009 survey of 227 global companies, the impact of the financial crisis has still not change the hedging strategies of many global companies because they are not ready to take high risk. The managers are trying to avoid any negative surprises profits or cash flow. Firms are looking mostly at the transaction side of foreign exchange risk. Only few companies are regarding exchange rate instability among key criteria when evaluating strategic investment projects. Which I found really odd, because from past few weeks we have talk about the impact and importance of foreign exchange market but why these firm are are not showing any reaction toward the changes. I reason I think these Firm are not changing their strategies is because they don’t want to risk them self. May be they think that the old strategies will work out. They also don’t want Central bank to intervene directly with foreign exchange because they are worried about the control the bank will have over the foreign exchange.
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article - BARSHA SHRSETHA FIN 446 Article one Corporate...

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