《最新multinational financial management（跨国公司财务）ch02 understandingexchange rates(共21张ppt课件).pptx》由会员分享，可在线阅读，更多相关《最新multinational financial management（跨国公司财务）ch02 understandingexchange rates(共21张ppt课件).pptx（21页珍藏版）》请在taowenge.com淘文阁网|工程机械CAD图纸|机械工程制图|CAD装配图下载|SolidWorks_CaTia_CAD_UG_PROE_设计图分享下载上搜索。
1、CHAPTER 2Understanding Exchange Rates第一页，共二十一页。Part I. Understanding Exchange RatesI. SETTING THE EQUILIBRIUM A. The exchange rateis the price of one unit of foreign currency expressed as a certain price in local currency.For example $.99/ means the euro in the U.S. is worth $.99.第二页，共二十一页。Understan
2、ding Exchange RatesB. How Do Americans Purchase German Goods?1. Foreign Currency Demand:-derived from the demand for foreign countrys goods, services, and financial assets.e.g. Americans demand German goods such as Mercedes autos第三页，共二十一页。The Demand for in the U.S.Qty$1.10/ $/DAt higher exchange rat
3、es, Americans demand less euros and vice versa.$1.20/ $1.00/ 第四页，共二十一页。Understanding Exchange Rates2. Foreign Currency Supply:- derived from the foreign countrys demand for local goods. - Foreign buyers must convert their currency in order to purchase.e.g. German demand for US goods such as Dell com
4、puters means Germans must convert eurosto US $ in order to buy.第五页，共二十一页。The Supply of in the U.S.$/ Qty$1.10/S$1.20/$1.00/At higher exchange rates, Germans supply more euros and vice versa.第六页，共二十一页。Understanding Exchange Rates3. Equilibrium Exchange Rateoccurs where the quantity suppliedequals the
5、 quantity demanded of a foreign currency at a specific local price.第七页，共二十一页。The $/ Equilibrium RateQty$1.10S$/ DEquilibrium第八页，共二十一页。Understanding Exchange RatesC. How Exchange Rates Change1. Increased demandas more foreign goods are demanded, more of the foreign currency is demand at each possible
6、 exchange rate2.The price of the foreign currency in local currency increases.第九页，共二十一页。Understanding Exchange Rates3. Home Currency Depreciation a. Foreign currency more valuable than the home currency.b. Conversely, the foreign currencys value has appreciated against the home currency.第十页，共二十一页。Th
7、e US$ Depreciates WhenQty$1.10/ S$/ DD$1.20/ Q1Q2第十一页，共二十一页。Understanding Exchange RatesD. Computing a Currency Appreciation = (e1 - e0)/ e0where e0 = old currency value e1 = new currency value第十二页，共二十一页。Understanding Exchange RatesEXAMPLE: AppreciationIf the dollar value of the goes from $1.10 (e0)
8、 to $1.20 (e1), then the has appreciated by(1.20 - 1.10)/ 1.10 = 9.1%第十三页，共二十一页。Understanding Exchange RatesC.4. Calculating a Depreciation:= (e0 - e1)/ e1where e0 = old currency value e1 = new currency value第十四页，共二十一页。Understanding Exchange RatesEXAMPLE: US$ DepreciationUse the formula(e0 - e1)/ e1
9、substituting(1.10 1.20)/1.20 = - 8.3% is the US$ depreciation.第十五页，共二十一页。Understanding Exchange RatesD. FACTORS AFFECTING EXCHANGE RATES:1.Inflation rates2. Interest rates3.GNP growth rates第十六页，共二十一页。Sample ProblemSuppose the U.S. dollar appreciates against the Russian ruble by 500%. How much did th
10、e ruble depreciate against the dollar?1010()5eeee第十七页，共二十一页。Sample ProblemDepreciation of the ruble:011()eexe第十八页，共二十一页。Sample Problem10005eeee10001010511516eeeeeeee第十九页，共二十一页。011()eexe00066568 3 %eexexx第二十页，共二十一页。内容(nirng)总结CHAPTER 2。Understanding Exchange Rates。currencys value has appreciated against the home currency.。EXAMPLE: Appreciation。2. Interest rates。3. GNP growth rates。Sample Problem第二十一页，共二十一页。