| This paper focused on manufacturer in our country, aim to measure the exposure offoreign exchange risk and find out factors which impact on foreign exchange risk of thesefirms. Finally based on empirical research, this paper tries to offer suggestion to ourmanufacturer about how to manage foreign exchange risk. With development of the economy,the volume of international trade of our manufacturer is increasing. Since elasticity of ChineseYuan strengthen after exchange rate reform, the volatility of foreign exchange rate of ChineseYuan is bigger, which leads to foreign exchange risk of manufacturer are raising as well. Inrecent years, there is an increasing number of literatures paying more attention on how toavoid and manage foreign exchange risk of firms in our country.This paper will firstly summarize studying achievements of foreign exchange risk fromboth overseas and home, and then introduce risk theory and foreign exchange risk theoryfurther. Based on studying previous achievements of this field and knowing relevant theory,the writer put forward three hypotheses on factors influencing manufacturers’ foreignexchange exposure. In later empirical part, in order to determine the exchange rates mostpertinent to our manufacturer, this paper first examined2010trade data selecting thirteenmajor trade partners of China, made factor analysis on their real exchange rate. According toresults of factor analysis, the writer picked up the independent variable to measure the foreignexchange exposure of our manufacturer. This paper find that there are at least10%manufacturer in China have significance exposure of foreign exchange risk. At last, this paperconduct regression analysis on factors affecting the manufacturing enterprises in foreignexchange exposure. This paper attempts to find the main factors impacting China’smanufacturing enterprises in foreign exchange risk exposure and give suggestions to thesefirms on how to manage foreign exchange risk effectively in the end. |
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