Effect Of Exchange Rate Changes On Foreign Trade Enterprises Cost Control Under The Influence Of RMB Cross-border Settlement

The cost of an enterprise is involved in the whole process of capital movement. Cost control is the guarantee of enterprise’s profit. Effective control of cost is a very important part in the process of accumulation and creation of wealth. Compared to domestic trade, the import and export business cycle of foreign trade enterprises is relatively long that have multiple links. In the face of domestic and foreign two markets, the market conditions are ever-changing. Foreign trade enterprises are facing the risk of exchange rate fluctuations due to exchange rate fluctuations and there is also a risk of capital depreciation due to changes in interest rates. Therefore, important issues in cost control of foreign trade enterprises include: i) How to effectively understand and anticipate the exchange rate? ii)How to effectively use hedging measures? iii) How to effectively use financial instruments to avoid risks, control costs and increase revenue?RMB cross-border settlement to foreign trade enterprises cost control has brought new opportunities for development, such as to reduce the currency settlement and exchange links,to speed up the circulation and turnover of capital, and to effectively avoid exchange rate risk, and to reduce exchange loss. These new opportunities are conducive to foreign trade enterprises to better reduce financial costs and avoid exchange rate risk. Meanwhile, these new opportunities are to foreign trade enterprises also has brought financing methods and other aspects of the innovative business, so as to better reduce the cost of foreign trade enterprises and generate value added in the link.From the perspective of the RMB cross-border settlement, this thesis investigates the topic of foreign trade enterprise cost control. Based on the fruitful results in the literature,this thesis firstly introduces the concept of cross-border RMB settlement, development status and related theory. Secondly, combined with previous theory of enterprise value chain for cost control, this thesis discusses the foreign trade enterprises cost control cross-border settlement of RMB before, after the proposed value chain cost control and further extended to the financial sector. Thirdly, this thesis focuses on the RMB cross-border settlement,changes in the foreign trade enterprises on ways and means of cost control. Then, this thesis elaborates the similarities and differences between the front and the rear cross-border RMB trade settlement enterprise cost control. Next, from the perspective of maximizing corporate profits, this thesis starts from the front qualitative analysis and quantitative modeling sequentially to study two aspects of RMB cross-border settlement of foreign trade enterprises cost control, then, the RMB exchange rate data of the State Administration offoreign exchange is disclosed, and time series empirical analysis of floating exchange rates is used. Further, this thesis proposes a floating exchange rate based on neural network of forecast mechanism, and through empirical analysis to verify its effectiveness. Next,through a virtual case, this thesis presents comparative analysis before and after the cross-border RMB trade settlement cost control benefits. Further, this thesis proposes countermeasures for the cost control of foreign trade enterprises under the cross-border settlement of RMB and a simulation case is designed to demonstrate the analysis. Last but not least, this thesis gives a summary of the work of this paper and prospects for the next step of research work.