The Study For Dalian A Company Exchange Rate Avoidance In Export Business

In this, the avoidance of exchange risks for Dalian A Import & Export Company (Abbreviated as 'Dalian A Co.'hereinafter) is studied. Since the exchange rate system reformed in July 2005, RMB is ongoing appreciation. For Chinese import and export companies, the influence is huge. In Dalian A Co.,, import and export businesses are traditional businesses for many years, mainly because of the RMB appreciation, the import and export businesses has got very big impact. As the exchange rate for RMB continues rising, Dalian A Co., is taking more and more risk and economic loss from appreciation of RMB, which has badly reduced the profit and competitive strength of the company. So, the purpose for this case study is to find reasonable exchange risks avoidance project, then strengthen Dalian A Co., exchange risks managements, and finally to avoid further economic loss and negative effect from exchange rate risk in future.This study focuses on the major risks that Dalian A Co., is facing, which are transaction risk, accounting risk and operating risk. Through system studying relative theory and methods and combining the actual situation of Dalian A Co., to analysis the exchange rate risks and the risks avoidance methods for Dalian A Co.,. And then, combined the domestic and foreign markets situation background, this paper offers detailed suggestions for the exchange rate risks management of Dalian A Co., and considers that Dalian A Co., should positively adjust the structure for exporting products, improve the products core competitiveness, try to increase the imports for advanced products, and carry out the "going global" strategy; and meanwhile, using accounting technology and financial derivatives to avoid the exchange rate risks in export business. And I believe this will help Dalian A Co., to avoid exchange rate risks, enhance the company anti-risks capacities and profitability, and these are also as reference for other similar companies.