Proceedings of the 2020 5th International Conference on Modern Management and Education Technology (MMET 2020)

Foreign Exchange Risk Management of Multinational Companies

Authors
Yuxin WANG
Corresponding Author
Yuxin WANG
Available Online 6 November 2020.
DOI
10.2991/assehr.k.201023.027How to use a DOI?
Keywords
Foreign exchange, Risk management, Multinational company, Hedging instruments
Abstract

After the 811 exchange rate reform in China, for one thing, the exchange rate formation mechanism has caused the RMB exchange rate to break through the ten-year appreciation against the dollar. For another, RMB began to fluctuate significantly. As a result of this change, Chinese foreign-related companies have suffered large exchange losses during this period of time, and their foreign exchange risk management capabilities need to be strengthened urgently. In this paper, the foreign exchange risk management strategies were analyzed through a literature review and case study of the multinational company ABB. Besides, solutions for Chinese multinational companies were provided to deal with foreign exchange risks. To strengthen the management of a company, enhancing the awareness of foreign exchange risks and building a risk management platform are recommended methods.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2020 5th International Conference on Modern Management and Education Technology (MMET 2020)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
6 November 2020
ISBN
978-94-6239-269-4
ISSN
2352-5398
DOI
10.2991/assehr.k.201023.027How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Yuxin WANG
PY  - 2020
DA  - 2020/11/06
TI  - Foreign Exchange Risk Management of Multinational Companies
BT  - Proceedings of the 2020 5th International Conference on Modern Management and Education Technology (MMET 2020)
PB  - Atlantis Press
SP  - 141
EP  - 143
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.201023.027
DO  - 10.2991/assehr.k.201023.027
ID  - WANG2020
ER  -