International Financial Management

In: Business and Management

Submitted By spatel90
Words 2499
Pages 10
Dear fellow shareholders,
What a year. Despite many challenges faced by the company, we have been successful in maintaining our position as the leading cell phone manufacturer in the world. The company’s subsidiaries in China, Japan, Israel and France face many economic challenges ahead. The challenges faced and the steps taken to solve those challenges, have been explained in the report.

We start by mentioning next year’s inflation rate and then forecasting the spot rate one year from today. This will give us an idea about how the various concerned currencies are relatively moving to one another. The effects of these movements are explained country wise later in the report.

The inflation rates forecasted for next year are as follows,

Country | Inflation rate | U.S.A | 2.3%[2] | China | 1.89%[1] | Israel | 0.44%[3] | France | 0.62%[4] | Japan | 2.5%[5] | UAE | 3.11%[10] |

Current spot rate (as of 10/06/2014)

| Dollar | Renminbi | Shekel | Euro | Yen | Dollar | --- | 6.1408 | 3.6794 | 0.7928 | 109.14 | Renminbi | 0.1628 | --- | 0.5993 | 0.1291 | 17.7776 | Shekel | 0.2717 | 1.6686 | --- | 0.2155 | 29.6735 | Euro | 1.2613 | 7.7459 | 4.6403 | --- | 136.9863 | Yen | 0.0091 | 0.05625 | 0.0337 | 0.0073 | --- |

Forecast spot rate (as of 10/06/2015)

| Dollar | Renminbi | Shekel | Euro | Yen | Dollar | --- | 6.1161 | 3.6125 | 0.7797 | 109.353 | Renminbi | 0.1635 | --- | 0.5875 | 0.1274 | 18.004 | Shekel | 0.2768 | 1.7021 | --- | 0.2158 | 30.3030 | Euro | 1.2825 | 7.8492 | 4.6339 | --- | 140.84 | Yen | 0.0091 | 0.0555 | 0.0330 | 0.0071 | --- |

As can be seen from the above two tables, the Shekel is expected to appreciate against all concerned currencies. Over the next year the Shekel is going to appreciate 2.07% against the Yen, 0.13% against the Euro, 1.96% against the Renminbi and 1.84% against the dollar. Also,…...

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