On The Effection Of Exchange Rates Changes On Multinational Enterprises' Value And The Measures To Avoid Foreign Exchange Risks

The effection of exchange rate changes on multinational enterprises? value is analyzed systematically. The measures is supplied to avoid foreigh exchange risks. First of all, factors affecting RMB exchange rate are analyzed and several econometrical forecasting model are introduced. RMB forecasting model is improved through practical analyzing. On the basis of exchange rate analyzing, the relation between exchange rate and multinational enterprises? value is studied. Secondly, multinational enterprises?value model is deduced from devident model. That makes it possible to do some research on the effection of exchange rate changes on multinational enterprises?value. Thirdly, theory and practical analyzing is done and the results show that china multinational enterprises?value will decrease if RMB exchange rate depriciates. Finally, foreign exchange rate risks is analyzed, including transaction risk, accounting tranlating risk and economics risk. Besides, the measures to avoid such risks are supplied.