Motives for choosing a currency in international business
In September 2003 Sweden had an election whether or not to have the euro. Sweden chose to stand outside the co-operation of the European Monetary Union, despite having joined the European Union sev ...
A gestão do risco cambial, as fontes de risco e as técnicas de pagamento: um estudo de caso
This work reflect the importance of risk management in international trade. We identify the categories of risk sources that must be measured by the companies which opt for the internationalization of their activity. Consequently, we verify the impact of the different categories of risk sources, in the choice of the ways of payment among entities of different countries. Finally, we carried out a case study using a Portuguese company belonging to the information technology industry, that has a substantial part of its activity centred abroad (about 75% of its sales and services are connected to international operations and use foreign currencies). We acknowledge that, although the international component might be very important in the activity, there is no concern either about the risk management policy or the means of payment of international obligations. Such reality, is directly associated to the fact that both in purchases and sales, the currency used is majority the USD which matches the foreign exchange differences. Beyond that, sales and services are between the parent company and its subsidiaries, eliminating the counterparty credit risk, while purchases, are made to suppliers which are represented by the company both in Portugal and abroad. So, commercial operations and means of payment are decided based on trust.
Indian economic reforms and ASEAN-India economic relations
Abstract This paper provides a brief account of the history of ASEAN-India relations and the changes currently taking shape as a result of the Indian economic reforms and the country's look East Policy. The paper then argues that there are opportunities for both sides arising from the likely new growth scenario for India outlined in the paper.