Countermeasure To Risk Avoidance Of Exchange Rate Within Foreign Trade Companies In Dalian

The Foreign Trade Companies always have been baffled by the exchange rate risk . Due to the correspondingly fixed exchange rate of RMB in the past many years, foreign trade companies have used to ignoring such a crucial fact that avoiding risk of exchange rate is very important in reducing exchange rate costs. They do not care about foreign exchange markets, do not have the necessary knowledge for biding and most urgently they have weak intention of risk avoiding. Though RMB new exchange rate system gave a lesson to these companies to realize how significant in keeping away risk of exchange rate, they still have no much ideas for cost management of exchange rate.The purpose of this thesis is to solve these questions faced by foreign trade companies. What kind of market changes will take place under the RMB new exchange rate system. How this new system impacts the behavior of foreign trade companies.The emphasis of the thesis will focus on discussing possible chances and challenges confronted by foreign trade companies under the RMB new exchange rate system; through investigating tools and methods of controlling and avoiding the risk of RMB exchange rate, it is trying to find out the strategies and tactics using by foreign trade companies in their risk of exchange rate management.Foreign trade companies have to face the changes of exchange rate not only in RMB but also in foreign currency. For short term adjustment of RMB exchange rate may not influence entity economy too much, however, it is very necessary for companies to pay more attention on risk management from long run development if they want to be survived in an international competitive environment. In order to keep away the risk of exchange rate, foreign trade companies firstly should engage in a strategy of analyzing the changes and trends of exchange rates development in advance, based on which to put forward solutions and methods. Financial instruments are the best choices to avoid this kind of risk. Through learning and applying these facilities, on the one hand companies and Banks are able to cooperate and exchange achievements, on the another hand companies may strengthen their cost management and increase application of financial instruments, thus efficient risk management will be obtained finally.