Finance Project Case Study Example | Topics and Well Written Essays - 750 words

Finance Project - Case Study Example The PPP on the other hand stipulates that identical products should sell at a common price when the conversion is done in the same currency. Changes in the prices in local currency due to inflation should be counteracted with an adjustment in the exchange rate to level the relative prices (Sercu, 2009). In the above case, Mr. Bozarth should use the Interest Rate Parity Theorem as follows: b) The board can decide to either invoice in home currency only, that is, undertaking only those transactions denominated in the home currency, or engaging in transactions denominated in stable foreign currencies such as the Dollar and Sterling Pound. They may also use of leads or lags. Use of advance payments or delayed payments. The company will benefit from expected exchange rate fluctuations by properly timing of its payments and receipts (Madura). The use of natural hedge by considering opening a foreign currency account to eliminate the risk of exchange movements and provide a suitable option if a client insists on billing in their currency. Forward Exchange Contract; The company can enter into an agreement with a bank to buy or sell a given amount of foreign currency at a specified date and rate. Money market Hedge can also be used where the company establishing a foreign currency obligation or asset by investing or borrowing in that foreign currency to match an existing liability or asset respectively in that currency (Madura,2011). Use of futures. the currency futures are bought or sold and losses arising due to foreign currency fluctuations on the actual transaction is matched by gain or loss in the future transaction. Under futures contracts, the parties come to an agreement to buy or sell an asset at a given fixed rate called the delivery price at a given date. The exchange rate might fluctuate either positively or adversely during this period to the date of payment but the pre-agreed rate will be used in

With specific reference to post-1990s developments, critically Essay - 2

With specific reference to post-1990s developments, critically evaluate the scope of the doctrine of humanitarian intervention under Article 2 of the United Nations Chapter - Essay Example In addition, this paper analyses the structural reform proposals of the UN Charter and the challenges it is currently facing. The various current matters of Security Council reform financing and proposals of the UN Charter are also discussed (Latif 2000, p.25). The United Nations Charter was born forty four years ago and it was as a result of the sufferings caused by the Second World War. The main purpose of the above mentioned Charter was to secure the upcoming generation from the impacts of the war. Moreover, the United Nations Charter aimed at correcting the League of the Nations’ weaknesses. The leadership of the United Charter rests on the highest authorities. Nevertheless, the challenges as a result of the Cold War barred the UN Charter from carrying out its main goals of the maintance of peace and security. The cold war was accompanied by a hostile environment and the UN could not perform its key role to implement the provisions made in the Charter, which were related to international security and peace. Despite the hostile environment presented by the Cold war, the United Nations pursued its Charter purposes in various fields such as in the improvement of social standards for individuals, decolonization and in the protection of human rights ((Mendlovitz & Weston 1995, p.13). Moreover, there were some adjustments that were made to the UN Charter and this enabled it to cope with various threats imposed to the international security and peace. The establishment of the UN Charter led to various dramatic changes in the world structure of peace and security. The above organizations came up with various ways of solving the challenges they came across. For instance, in order to eliminate the powers used by high authorities during the Cold War, the UN Charter established various peacemaking (Mingst & Karens 1995, p.29) and it took the role of the Security Council in maintaining international peace and