International Finance 1 min read
Determining Economic Exposure
The economic exposure is usually determined by two factors − ● Whether the markets where the company inputs and sells its products…
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Author: Prabhu TL.
Prabhu TL is a SenseCentral contributor covering digital products, entrepreneurship, and scalable online business systems. He focuses on turning ideas into repeatable processes—validation, positioning, marketing, and execution. His writing is known for simple frameworks, clear checklists, and real-world examples. When he’s not writing, he’s usually building new digital assets and experimenting with growth channels.
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Calculating Economic Exposure
Foreign asset or overseas cash flow value fluctuates with the exchange rate changes. We know from statistics that a regression…
International Finance 1 min read
Benefits and Risks of Financial Globalization
One of the major benefits of Financial Globalization is that the risk of a “credit crunch” has been reduced to…
International Finance 2 min read
Economic Exposure – An Example
Consider a big U.S. multinational with operations in numerous countries around the world. The company’s biggest export markets are Europe…
International Finance 1 min read
Types of Exposure
Companies are exposed to three types of risk caused by currency volatility − ● Transaction exposure − Exchange rate fluctuations have an effect on…
International Finance 1 min read
Exchange Rate Fluctuations
Exchange rate fluctuations affect not only multinationals and large corporations, but also small and medium-sized enterprises. Therefore, understanding and managing…
International Finance 4 min read
Exchange Rate Forecast: Models
Some important exchange rate forecast models are discussed below. Purchasing Power Parity Model The purchasing power parity (PPP) forecasting approach…
International Finance 1 min read
Exchange Rate Forecast: Approaches
The two most commonly used methods for forecasting exchange rates are − ● Fundamental Approach − This is a forecasting technique that utilizes elementary…
International Finance 1 min read
Exchange Rate Forecasts
Economists and investors always tend to forecast the future exchange rates so that they can depend on the predictions to…
International Finance 1 min read
Factors Affecting International Equity Returns
Macroeconomic factors, exchange rates, and industrial structures affect international equity returns. Macroeconomic Factors Solnik (1984) examined the effect of exchange…
International Finance 1 min read
Global Registered Shares (GRS)
GRS are a share that are traded globally, unlike the ADRs that are receipts of the bank deposits of home-market…
International Finance 2 min read
American Depository Receipts (ADR)
An ADR is a receipt that has a number of foreign shares remaining on deposit with the U.S. depository’s custodian…