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Foreign Exchange Management
Essay specific features
Written by:
Nena V
Date added:
January 25, 2012
Level:
University
Grade:
A
No of pages / words:
3 / 632
Was viewed:
5677 times
Rating of current essay:
Essay content:
Such depreciation could have the effect of wiping out the existing benefit of lower Irish operating costs relative to our American operations, which we have come to enjoy in recent years due to the dollars large increase in value. One solution to this looming problem is to allow the controller of our Irish subsidiary to buy the punt forward, thereby eliminating the downside risk of any dollar depreciation...
displayed 300 characters
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One solution to this looming problem is to allow the controller of our Irish subsidiary to buy the punt forward, thereby eliminating the downside risk of any dollar depreciation. However, this option completely negates the fact that there is currently a hedge already in place ? our Irish operations managers have every incentive to cut operating costs given a large downward swing in the dollar...
displayed 300 characters
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