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Foreign Exchange Exposure: An Investigation of the Determinants in the UK Multinationals
Ibrahim Zubairu,
Ahmed Jamal Iddrisu
Issue:
Volume 7, Issue 4, August 2019
Pages:
95-102
Received:
7 April 2019
Accepted:
17 June 2019
Published:
7 August 2019
Abstract: The purpose of this study is to investigate the determinants of differential exchange exposure across listed UK Multinational Corporations (MNCs) from 1993-2013, so as to identify their relationships regarding their foreign operations as listed on the FTSE 350 Index. The study used quantitative analysis to reach its conclusions. This involves a time series regression analysis which was used to compute the foreign exchange exposure co-efficient. The conclusions from this analysis are summarized. Data was collected from accounting footnotes of financial statements from FAME and the DataStream on Compustat Geographical system database; while annual data updated annually about trade weights within the region was obtained from the International Monetary Fund’s Directory of Trade statistics yearbook. The results suggest that 20% of the sampled MNCs have statistically significant exposure at the 5% level significance, and the regression estimates of the determinants of exchange rate exposure suggests that, the level of a firm’s foreign sales, market value of its equity, and quick ratio, have strong combined explanatory power for exposure. The cross-sectional differences in the degree of exchange rate exposure are negatively related to firm size and positively related to the degree of foreign operation. Firm liquidity is shown to be a determinant of exchange exposure. Other firm characteristic variables have weak or are of no significance in terms of explaining exposure. The results from this empirical study build upon prior studies on foreign exchange exposure and offer the MNCs an alternative approach to minimize their inputs when operating in a developed market.
Abstract: The purpose of this study is to investigate the determinants of differential exchange exposure across listed UK Multinational Corporations (MNCs) from 1993-2013, so as to identify their relationships regarding their foreign operations as listed on the FTSE 350 Index. The study used quantitative analysis to reach its conclusions. This involves a tim...
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Review on Status and Trends in Taxation of Foreign Economic Operations in Ukraine
Natalie Yuriivna Shevchenko,
Shulga Ievgenii Viktorovych
Issue:
Volume 7, Issue 4, August 2019
Pages:
103-106
Received:
3 July 2019
Accepted:
20 August 2019
Published:
6 September 2019
Abstract: Taxation of foreign economic operations is carried out by applying tariff and non-tariff regulatory methods and is based on the use of tax policy instruments ‒ customs duty, excise duty and VAT. Having defined its foreign economic and tax policy, the state determines the direction for development, as well as the strategy and tactics to achieve the goal through foreign economic operations. Based on the generalization of theoretical foundations, it is determined that foreign economic operations are a type of foreign economic activity aimed at implementing a trade agreement between countries. The customs duty is of the utmost importance in taxation. By economic nature, it is an integral part of the taxation of foreign economic operations. During the research process the economic importance of customs duty was deepened and determined that, unlike other indirect taxes, which are primarily aimed at fiscal purposes, customs duty is a tool for financial regulation of the country's economy, namely it stimulates inefficient domestic production and perform other functions for foreign trade development. The theoretical, methodological and practical provisions concerning taxation of foreign economic operations with agricultural products and assessment of its functioning efficiency in conditions of Ukrainian integration into the EU are studied. A comprehensive approach to the implementation of the regulation in foreign economic operations with agricultural products is proposed. The directions to improve taxation of foreign economic operations are substantiated.
Abstract: Taxation of foreign economic operations is carried out by applying tariff and non-tariff regulatory methods and is based on the use of tax policy instruments ‒ customs duty, excise duty and VAT. Having defined its foreign economic and tax policy, the state determines the direction for development, as well as the strategy and tactics to achieve the ...
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Index Measurement and Influencing Factor Analysis of China's Financial Innovation Structure
Issue:
Volume 7, Issue 4, August 2019
Pages:
107-124
Received:
29 September 2018
Accepted:
27 August 2019
Published:
9 September 2019
Abstract: Since the reform and opening up in 1978, China has basically established a financial system that has adapted to the requirements of the market economy after several stages of financial innovation. Based on financial innovation events in China from 1979 to 2015, this paper compiles the structural index of China's financial innovation, and analyses the evolution trends and influencing factors of China's financial innovation structure. The index reflects the increasingly complexity and maturity of the overall structure of financial innovation since the reform and opening up, while the cumulative contribution of the six innovative forms to the changes in innovation structure has become more consistent and stable. The empirical analysis shows that the exploration of financial innovation is the continuous driving force to promote the change of financial innovation structure in China. What’s more, major reform decisions, opening to the outside world, as well as scientific and technological progress promote the structural change of China's financial innovation, while the financial crisis inhibits the structural change of China's financial innovation. The policy implication of this paper is that China needs to deepen reform, create a more suitable environment for endogenous financial innovation, carry out more original financial innovation, focus on promoting system, management and technology innovation, and pay attention to the selection of opportunity and window period of innovation.
Abstract: Since the reform and opening up in 1978, China has basically established a financial system that has adapted to the requirements of the market economy after several stages of financial innovation. Based on financial innovation events in China from 1979 to 2015, this paper compiles the structural index of China's financial innovation, and analyses t...
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Modeling Co-optimization of an Enterprise’s Production Capacity, Retail Sale and Advertising
Sherstennikov Yuriy,
Yakovenko Aleksandr
Issue:
Volume 7, Issue 4, August 2019
Pages:
125-130
Received:
3 August 2019
Accepted:
26 August 2019
Published:
16 September 2019
Abstract: The work deals with the development of one of the methods for simulating the logistics system of an enterprise. The aim of the article is using the approach developed by J. Forrester to build a simulation model, based on which it is possible to perform mathematical co-optimization of the production capacity, retail sale and advertising of an enterprise which produces a single product. The paper formulates a system of equations describing the logistics system of the enterprise. The model of logistical system offered by authors is original. This model has no analogues in the scientific literature. Article purpose is working out of a technique of the co-ordinated definition of optimum parametres of logistical system. Article develops a numerical method of the decision of an optimising problem which is based on system of the equations written down in shape with discrete time. The calculations of the time behavior of all rates of the logistics system (rate of production, rate of delivery), as well as the behavior of the inventory levels at the wholesale warehouse and retail are carried out. The optimization problem of determining the maximum economic efficiency is formulated and solved. In this case, production capacity and advertising costs are considered as variable parameters of the optimization problem. By numerical calculations, it is proved that there is a single point of maximum economic efficiency as a function of the planned capacity of the enterprise. Dependence on time of current profit of the enterprise is calculated and analysed.
Abstract: The work deals with the development of one of the methods for simulating the logistics system of an enterprise. The aim of the article is using the approach developed by J. Forrester to build a simulation model, based on which it is possible to perform mathematical co-optimization of the production capacity, retail sale and advertising of an enterp...
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Factors Influencing the Engagement of Rural Youths in Off-Farm Income Generating Activities in Developing Countries: Evidence from Ethiopia, Wolaita Zone
Issue:
Volume 7, Issue 4, August 2019
Pages:
131-141
Received:
18 August 2019
Accepted:
30 August 2019
Published:
19 September 2019
Abstract: Ethiopia is one of the poorest countries in the world with high rate of unemployment of youths. This rate is higher in rural than urban areas. Income generating activities play a vital role to improve the livelihood of rural people in developing countries. Many rural youths are faced with difficulty of maintaining livelihoods and consequently, poverty remains pervasive among them. The paper examined the engagement of rural youths in off-farm or non-agricultural income generating activities as well as factors influencing their involvement in Soddo and Areka towns in wolaita zone, Ethiopia. The purposes of this research are to explicitly enquiry and consider aspects that are influencing the engagement of rural youths in off-farm income generating activities in Sodo and Areka towns in wolaita zone. The study was utilized causal research design to achieve the research objectives. The target population under study is all youth groups in the ten off-farm income generating activities in both Sodo and Areka towns. The study was conducted from July 2018 to August 2019. In this study, primary and secondary data types and sources were used. The instruments to collect primary data were questionnaires. Sample size was 306 which determined by using Yamane (1967) formula and individual informants were selected via stratified random sampling technique. The data collected was analyzed quantitatively and qualitatively by the aid of SPSS. V.16. The finding of the study showed that the variables (entrepreneurial, technology, institutional, cultural, financial, socio-economical, psychological and infrastructural factors affecting the engagement of rural youths off-farm income generating activities both in Sodo and Areka towns in Wolaita zone, Ethiopia which were explained the variance of 73.7% and 26.3% of the variance was explained by other factors which are not the part of this study variables. Hence, stakeholders who focus on the engagement, promotion, encouragement and expansion of off-farm income diversification are expected to enhance entrepreneurial and psychological motivation to the youths.
Abstract: Ethiopia is one of the poorest countries in the world with high rate of unemployment of youths. This rate is higher in rural than urban areas. Income generating activities play a vital role to improve the livelihood of rural people in developing countries. Many rural youths are faced with difficulty of maintaining livelihoods and consequently, pove...
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