The Research On Measures B Company Takes In Its Exporting Business Under The Background Of RMB Value Rising Against USD

RMB value has been rising against USD for several years. It is a challenge for all the exporting enterprises. How to avoid this risk is the key for enterprises to realize their estimated revenue and even more, the key for enterprises to survive in the severe competition. This thesis use the theory and the practical measures B company is taking, as well as its pharmaceutical background to analyze how the exporting enterprises should do to avoid the exchange rate risk under the background of RMB value rising against USD.The thesis at first introduces the business model of B company and its operating procedure in its exporting business.(the procedures under LC contracts, bank collection contracts and TT payment contracts).Then introduces the payment ways B company takes in its exporting business and the financial risks when RMN value is keeping rising against USD. And by analyzing in details the measures B company is taking in its exporting business (including the management of LC contracts, bank collections contracts as well as the TT payment contracts.), the thesis analyzes with theory the general tools Chinese enterprises take to avoid the exchange rate risks.(such as forward exchange contract, non-delivery forward, Swap Transaction, USD loans, and import/export bill advance). And continuing analyzing the advantage, weakness, chance and threat of the measures B company is taking. Then concludes that the measures avoiding these possible exchange rate risk and exchange loss is a double-edged sword. They will indeed avoid some possible loss and even gain some additional revenue, on the other hand, however, will also lead to the loss of orders and reducing the exporting quantity.B company has established the financial tracking on orders of different payment ways,(including the financial tracking on LC contracts, on bank collection contracts,and on TT payment contracts). Now the long term trend of RMB value rising against USD is very clear. It is not enough for B company just takes short term measures to avoid the financial risks, B company should also establish the long term exchange rate risk management system to research and manage and even control such risk. Then introduce how the enterprises should do to establish such exchange rate risk management system.Finally the theses discusses the importance of personnel training program. The aim of this program is to help salesmen to have enough knowledge and to establish the correct perspective on the global economic environment. Also this program could help them make the correct estimation on the state policy which will effect heavily the foreign trade business (such as the change of exporting tax-rebate rate as well as the change of exchange rate between RMB and USD and other currencies)...