Exchange rate mechanisms
Article Abstract:
The currency instability that resulted from the volatility of the European exchange rate mechanism (ERM) and related currencies in Sep 1992 did not significantly affect corporate treasurers. Most companies had already sold their dropping currencies beforehand. They have been appropriately prepared by the hedging techniques they employed to avoid risks that accompany foreign exchange investments. For transaction risks, forward contract is usually the instrument used to keep prices and costs in local currencies. Options, which permits cancellation or spot dealing if circumstances change, is used to shield against losses through an agreed strike price. Strategic risks can also be hedged by instruments used against transaction risks although they are mostly managed through balance sheet judgments. Translation risks, on the other hand, are rarely hedged because they are perceived as an effect of accounting.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1992
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Music faces chorus of disapproval
Article Abstract:
Manufacturers of classical musical instruments are starting to consider alternative sources of material as public concern for environmental protection continues to spread. The classical musical instruments industry is a major user of endangered materials, including ivory for pianos, rosewood for guitar soundboards, the Black Forest's maplewood for bassoons, French cane for reeds, and Pernambuco for string instruments' bows. Some manufacturers have begun using more environment-friendly raw materials, such as plastics for drums, metals for flutes and saxophones, fake ivory for pianos, and carbon fiber for violin bows and guitars. There is some resistance, however, to the use of artificial materials. Serious users of classical instruments still prefer the look and the 'feel' of the old-fashioned instruments.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1992
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