Foreign Enterprises In China Foreign Exchange Risk Management

With the development of the international economy unity and RMB's getting exchangeable freely, the foreign exchange risk has influenced the enterprise management more and more significantly, therefore, foreign exchange risk comes to play a more and more important role in the enterprise with foreign business in China .In today's environment of volatile of foreign exchange markets, global integration of operation has accelerated the foreign exchange risk for enterprises. It has become an academic question that attracts many scholars' interests. There have been many research outcomes in this field, what are seldom effectively utilized by native enterprises. This thesis is science-oriented and prospect-oriented .It analyze the methods and strategy in the foreign exchange risk management from the realistic status of native enterprises.The whole thesis includes three parts.I. Summarization of the foreign exchange market and foreign exchange risk. It includes the summarization of international financial market and the foreign exchange market, the influence of the RMB's freely exchangeable process to the native foreign exchange market and the conception and the types of the foreign exchange risk.II. The analysis of the foreign exchange risk and corresponding management tactics. In this part the thesis analyze and measure the foreign transaction exposure, the foreign conversion exposure and the foreign economical exposure and expounds corresponding management tactics for them. Additionally, the thesis suggests that the native enterprises involved in the business of foreign exchange set up the monetary committee and assign corresponding managerial purview to control foreign exchange risk effectively.III. The thesis analyzes the case of CS and NOKIA on the control of the foreign exchange and expects to help the native enterprise with foreign exchange business to control their foreign exchange risk.Through the dissertation and analysis of this thesis, I try to provide the corresponding management tactics controlling foreign exchange risk for the native enterprise with foreign exchange business.