Research On Foreign Exchange Risk Management Of Multinational Corporations

Since July 21, 2005, the People’s Bank of China began to implement a managed floating exchange rate regime, the RMB exchange rate formation mechanism became more flexible, to make such a change also will increase the uncertainty of exchange rate movements. March 17, 2014 the People’s Bank of China to improve the RMB with the US dollar exchange rate volatility again. At the same time the global economy presents an unstable trend in January 2014 to the year 2015, the ruble with the CNY(SUR: CNY) exchange rate has fallen sharply, the euro with CNY(EUR: CNY) into six times, the Swiss franc with RMB(CHF: CNY) is also being staged huge fluctuations, the face of such a complex foreign exchange market, then multinationals as global market-oriented, engaged in global production and business activities of the company, must have more branches at home and abroad using different forex currency trading, the balance sheet and income statement presented in different currencies, in the current economic environment is unstable countries and more active foreign exchange fluctuations, it is easy to let the loss of existing business price advantage and suffered varying degrees of damage, in order to better operate and maintain the economic benefits have been achieved, the need for effective ways to address the risks arising from fluctuations in foreign exchange and transfer of existing risks.Obviously, through the internationalization of large multinational study in China’s foreign exchange risk management issues can China’s major international company to the world and to engage in import and export business of buying and selling businesses learn to play the role. In this paper, a typical large international Fortune 500 multinational companies in China’s investment company, for example, to study how international companies to avoid the risk of foreign exchange fluctuations to the enterprise.This introduces the research background and significance, as well as domestic and foreign exchange risk research status and the main content of this research and methods. Describes the foreign exchange risk management theory, the purpose of multinational foreign exchange risk management, and analyzed by A multinational foreign exchange risk management approach, combined with practical work experience, according to the specific problems A multinational study of foreign exchange risk management The strategies and methods to provide some inspiration for Chinese and multinational companies need to engage in import and export business conducted. Finally, the company also encountered the problem of foreign exchange risk Foreign exchange risk management recommendations in the case on the basis of risk.