--%>
Assignment Help - homework help

Conversion and competitive effects of exchange rate changes

Discuss the conversion and competitive effects of exchange rate changes on the firm’s operating cash flow.

E

Expert

Verified

Competitive effect : In this, exchange rate changes will affect the operating cash flows by altering the firm’s competitive position.

Conversion effect : Given operating cash flows in terms of the foreign currency may get converted to the lower or higher dollar (home currency) amounts since the exchange rate changes.

   Related Questions in Financial Accounting

  • Q : Investing in dual currency bonds What

    What an investor should consider before investing in dual currency bonds?

    		•
  • Q : Closing entry for financial accounting

    A journal entry that moves the effects of revenues or expenses to the owners' equity account. Only temporary account that is on the income statement is closed. The purpose of a closing entry is twofold. First, it moves revenue to retained earnings on the balance sheet

    		•
  • Q : Introduction of the term Financial

    Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?

    		•
  • Q : Cash system and mercantile system what

    what is the difference between cash system of accounting and mercantile system of accounting

    		•
  • Q : Psychological Health Psychological

    Psychological Health: The employees have noted in their survey feedbacks that their peer relations are based on trust and are healthy. But the nature of work is such that they see lot of suffering. Their interaction with clients at times is not health

    		•
  • Q : Characteristics of Dual currency bonds

    State the characteristics of the Dual currency bonds market instrument.

    		•
  • Q : World beta concept of a security

    Explain the world beta concept of a security.

    		•
  • Q : Calculation of weighted average cost of

    Calculation of weighted average cost of capital: Under this following steps are undertaken: 1. Record amount in respect of various long term resources of firm. 2. Add up the amo

    		•
  • Q : Balance sheet A listing of the

        A listing of the liabilities, assets, and equity of an entity at a point in time, the end of a month, or quarter, or year. It is one of the four financial statements required in a full financial report. The balance sheet gives the reader what the entity owns (assets)

    		•
  • Q : What is Freight-in What is Freight-in

    What is Freight-in and what are its conditions?

    		•