Seminar 3 – Exchange Rates

 

Objective

Preparation for and activities during this seminar will help you to develop and deepen your understanding of:
exchange rate exposures/risks; and
the effects (especially strategic effects) that XR movements can have on companies that engage in cross-border collaborations.
This will directly contribute to your ability to address Q4 in the assignment.Preparation for and activities during this seminar will help you to develop and deepen your understanding of:

exchange rate exposures/risks; and
the effects (especially strategic effects) that XR movements can have on companies that engage in cross-border collaborations.
This will directly contribute to your ability to address Q4 in the assignment.
Preparation
1. Attend the lectures on Raising Finance and Multinational Tax and Risk
2. Revise the slides and recommended reading from the lectures
3. Read the following material:

a. Dhanani, A. (2003) ‘Foreign exchange risk management: a case in the mining industry’, The British Accounting Review, 35(1), pp. 35-63. (You are only required to read the followingsections: ‘Introduction’, ‘Prior Literature’ and ‘The case: ABC plc’)
b. Pan, Y. (2002) ‘Equity Ownership in International Joint Ventures: The Impact of Source Country Factors’, Journal of International Business Studies, 33(2), pp. 375-384.
NB: Use NORA and/or google scholar to find these academic papers!
4. Familiarise yourself with any terminology that is still unclear
5. Start collecting information from assessment case and academic literature relating to XRs.

6. Download and print the attached case study/seminar brief and bring it to the seminar (you are not expected to complete it before the seminar!).
You are given a short case study relating to XR exposure, risk and movements. In small groups (your seminar tutor will allocate you), you will work through a variety of tasks, making calculations and particularly discussing strategic implications of XR movements. After every task, there will be a short plenary session/discussion and the tutor will present the results of calculations and summarise the key points from the discussions.

Following this case study, you will be able to apply your learning to the context of cross-country collaborations (such as M&A, JV or others): you will remain in your groups and identify possible ways, in which XR movements affect cross-country collaborations.
This will also be followed by a tutor-facilitated plenary discussion. Your tutor will then indicate further suggested reading useful for Q4 of the assignment.