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LOVELY PROFESSIONAL UNIVERSITY

TERM PAPER
School of Management Department of Management
Name of the faculty member: Bhavdeep S Kochar
Course No. MGT624 Course Title: Forex Management
Class MBA Semester IVth Section SP509 Batch 2009-2011
Max. Marks : 25 Date of Allotment: 5th Feb 2010 Date of Submission : 13/4/2010

Roll No Objectives of Academic Activity Topic ORGANI Model*


ZATION

The objective of this term paper is Analyze the status and The evaluation
to aware the students to about the performance of criteria
currency exchange, currency trade, International Money Market Marks of
currency valuation and the cross and instruments available Submission:15
currency transactions, exchange to invest in these markets. VIVA:10
rate determination, PPP, IRP, On the basis of this Marks
CIRP and UIRP. information, student is
required to make a
investment plan to invest in
International Money Market
market. They have to track
the currency exchange rate
and possible alternatives to
invest particularly in Latin
American countries and to
RT1901A2 give a comparison of
6 investment plan for INDIA
and Latin American
Countires

Analyze the status and


performance of
International Equity Market
and instruments available
to invest in these markets.
On the basis of this
information, student is
required to make a
RT1901B3 investment plan to invest in
7 International Equity Market
market. They have to track
the currency exchange rate
and possible alternatives to
invest particularly in Russia
and to give a comparison of
investment plan for INDIA
and Russia
Analyze the currency
movement ( Euro) and
Indian Rupee. critically
evaluate the reasons for
change of currency price
for last 5 years. Students
are required to evaluate the
volatility in both currencies
and the relative Standard
RT1901B4 deviation and to analyze
4 the factors behind the
fluctuation and the relative
strength of currency in the
pair. They have to cover all
the macro economic factors

Many Asian governments


have attempted to promote
their export
competitiveness by holding
down the value of their
currencies through foreign
exchange
market intervention.
What is the likely impact of
this policy on:
1. Asian foreign exchange
reserves.
2. Asian inflation.
3. Asian export
opportunities.
Asian living standards.
Student is required to
collect the date of three
major economies of Asia
and then analyze the
factors behind the
reserving down the values
of currency. They have to
RT1901B5 analyze the position on the
0 basis of currency.

RT1901B5 Dell Computer produces its


6 Machines in Asia with
components largely
imported from the United
states and sells its products
in various Asian nations in
local currencies.
a) What is the likely impact
on Dells Asian profits of a
strengthened dollar?
Explain
B) What hedging
techniques can Dell employ
to lock in a desired
currency conversion rate
for its Asian sales during
the next year

Infosys Technologies
RT1901B5 Selling mostly their
9 software solution in US and
Europe. Student is required
to work on the hedging
polices adopted by the
company to overcome the
currency fluctuation risk.

Tata Consultancy Services


LTD Selling mostly their
software solution in US and
Europe. Student is required
to work on the hedging
polices adopted by the
company to overcome the
currency fluctuation risk.

RT1902A1
7

RT1902A1 Lenovo Computer


9 produces its Machines in
Asia with components
largely imported from the
United states and sells its
products in various Asian
nations in
local currencies.
a) What is the likely impact
on Lenovo. Asian profits of
a weakened dollar? Explain
b) What hedging
techniques can Lenovo
employ to lock in a desired
currency conversion rate
for its Asian sales during
the next year.
Review the annual reports
of Indian Company and
analyze which currencies
have these companies
borrowed in besides
the Indian rupee? Do these
foreign currency
borrowings offset any
obvious economic
exposure they have in
those currencies(e.g. they
have a subsidiary
located in that country.).
They can pick FCCB for
RT1902A2 their Analysis.- Suzlon
2 Energy

Student is here required to


asses the country v/s
Currency risk by comparing
India with Argentina and
find the reason behind the
risk factors and the impact
of Macro economic factors
Like GDP, Inflation and
Bank Rates on the
currency Valuation. They
RT1902A2 have to analyze the data of
5 atleast five years

RT1902B3 Student is here required to


5 asses the country v/s
Currency risk by comparing
the India with Australia and
find the reason behind the
risk factors and the impact
of Macro economic factors
Like GDP, Inflation and
Bank Rates on the
currency Valuation. They
have to analyze the data of
atleast five years
Student is here required to
asses the country v/s
Currency risk by comparing
the South Africa with India
and find the reason behind
the risk factors and the
impact of Macro economic
factors Like GDP, Inflation
and Bank Rates on the
currency Valuation. They
have to analyze the data of
atleast five years

RT1902B4
3

RT1902B4 Student is here required to


7 asses the country v/s
Currency risk by comparing
the Brazil with India and
find the reason behind the
risk factors and the impact
of Macro economic factors
Like GDP, Inflation and
Bank Rates on the
currency Valuation. They
have to analyze the date of
atleast five years

RT1902B4
9 Using data from
OECD(www.oecd.org/nada
ta.htm), plot the PPP
exchange rates for the
pound, dollar. Have these
PPP exchange rates have
gone up or down
over time? What accounts
for the changes in these
PPP exchange rates over
time? Make a detail
Analysis on the basis of
Data available
Using data from
OECD(www.oecd.org/nada
ta.htm), plot the PPP
exchange rates for the
pound, Rupee. Have these
PPP exchange rates have
gone up or down
over time? What accounts
for the changes in these
PPP exchange rates over
time? Make a detail
Analysis on the basis of
Data available

Review the annual reports


of Indian Company and
analyze which currencies
have these companies
borrowed in besides
the Indian rupee? Do these
foreign currency
borrowings offset any
obvious economic
exposure they have in
those currencies(e.g. they
have a subsidiary
located in that country.).
They can pick FCCB for
RT1903A1 their Analysis.- Renuka
5 Sugars.

Using data from


OECD(www.oecd.org/nada
ta.htm), plot the PPP
exchange rates for the
Rupee, dollar. Have these
PPP exchange rates have
gone up or down
over time? What accounts
for the changes in these
PPP exchange rates over
time? Make a detail
RT1903A5 Analysis on the basis of
9 Data available

RT1903B2 Analyze the currency


7 movement ( dollar) and
Indian Rupee. critically
evaluate the reasons for
change of currency price
for last 5 years. Students
are required to evaluate the
volatility in both currencies
and the relative Standard
deviation and to analyze
the factors behind the
fluctuation and the relative
strength of currency in the
pair. They have to cover all
the macro economic factors

Analyze the status and


performance of different
International Financial
Markets such as Euro
Markets, Bonds Market,
RT1903B4 Equity Market and
instruments available
2
to invest in these markets.
Also the students will bring
out the comparison
between Indian Financial
Markets and Global
Financial Markets

Analyze the currency


movement ( pound) and
Indian Rupee. critically
evaluate the reasons for
change of currency price
for last 5 years. Students
are required to evaluate the
volatility in both currencies
and the relative Standard
deviation and to analyze
the factors behind the
fluctuation and the relative
strength of currency in the
RT1903B5 pair. They have to cover all
7 the macro economic factors

RT1903B5
8 Review the annual reports
of Indian Company and
analyze which currencies
have these companies
borrowed in besides
the Indian rupee? Do these
foreign currency
borrowings offset any
obvious economic
exposure they have in
those currencies(e.g. they
have a subsidiary
located in that country.).
They can pick FCCB for
their Analysis.-GMR Infra

Using data from


OECD(www.oecd.org/nada
ta.htm), plot the PPP
exchange rates for the Yen
Rupee. Have these PPP
exchange rates have gone
up or down
over time? What accounts
for the changes in these
PPP exchange rates over
time? Make a detail
Analysis on the basis of
RT1903B7 Data available
0