Professional Documents
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ON
A STUDY ON FINANCIAL ANALYSIS OF RAMA PHOSPHATE
PVT. LTD. COMAPANY WITH SPECIAL REFRENCE TO
INDORE BRANCH
Submitted to:-
(2015-2017)
UNDER GUIDENCAE:
SUBMITTED BY:
Prof. NEHA CHOUHANN GANESH CHANDRA
JOSHI
MBA
3 Sem.
rd
Roll
No.:52770040
CERTIFICATE
This is to certify that Ganesh Chandra Joshi, student of MBA IV Sem. program
has here, with proposing to choose the major research project titled A
Study of Exchange Rate Fluctuations and its Impact on Indian
Foreign Trade and prepared this report under my guidance and
supervision.
Faculty Guide
Prof. Sampada Najan
Faculty MIST Indore
DECLARATION
To the best of my knowledge and belief the information, facts, figures that
are presented in this report are actually based on my own work.
Ganesh Chandra
joshi
MBA 4th Sem.
ACKNOWLEDGEMENT
Gan
esh Chandra Joshi
MB
A IV Sem
EXECUTIVE SUMMARY
With the increasing level of globalization of economies of all the countries, the markets for
all the goods and services have become hyper competitive. The relationship between the
values of local currencies in terms of foreign currencies and export competitiveness of any
country is very complex. In the short run, devaluation of local currency may have the positive
effect on exports but also makes the imports costly. This relationship will become more complex
if there is heavy dependence of imported resources in the exported products. In the long run,
though it is the brand and value addition which will have more profound effect on export
competitiveness rather than cost based strategies which are easier to copy by other countries.
Indias direction of foreign trade has exhibited a structural shift during the last decade. Trade
volume and trade share of emerging and developing economies has increased while the share of
conventional trading partners has showed a declining trend. This investigation is focused on the
effect of exchange rate fluctuations on economic performance in developing countries.
Anticipated exchange rate depreciation determines the cost of imported intermediate goods and,
hence, the output supplied. In contrast, unanticipated currency fluctuations determine aggregate
demand through exports, imports, and the demand for currency, and determine aggregate supply
through the cost of imported intermediate goods.
The review of the theoretical literature on this topic indicates that there is no clear-cut
relationship between exchange rate volatility and trade flows. The presumption that trade is
adversely affected by exchange rate volatility depends on a number of specific assumptions and
does not necessarily hold in all cases, especially in a general equilibrium setting where other
variables change along with exchange rates. The ambiguity of the theoretical predictions
reinforces the importance of investigating the issue empirically.