Ⅱ. Exchange rate regime
1. What is the exchange rate?
In finance, the exchange rates between two currencies specifies how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency. For example an exchange rate of 91 Japanese yen (JPY, ¥) to the United States dollar (USD, $) means that 91 yen is worth the
currency risk/ foreign exchange risk of the market risk.
The company operates primarily in Korean Won (KRW) and its official accounting records are maintained in Korean Won. The effect of foreigncurrency risk to net income is a sum of net foreigncurrency fluctuations of Korean Won against other foreigncurrency fluctuations. Foreigncurrency exposure to financial assets and liabilities of a 5%
2010) (20th)
-Labor force : 38.43 million (2009 est.)
-Unemployment rate : 1.5% (2009 est.)
-Population below poverty line : 9.6% (2006 est.)
-Inflation rate (consumer prices) : 0.9% (2009)
√ Quantity of distribution more increases.
√ No tax – make more chance with other
country
√ Attracting more traveler means increase
of foreigncurrency
Introduction
Foreign Exchange Market
a market for converting the currency of one country into that of another country
Exchange Rate
the rate at which one
currency is converted
into another
The Functions of the Foreign Exchange Market
Currency Conversion
To convert the currency of one country
into that of another country
Insuring against Foreign
market, we, 美ME+ also is looking to expand our business.
This report is divided into two parts, the first half; we will talk about the Japanese market as a whole cultural risk, country risk, and currency risk. And in the later half; we will analysis the cosmetics market in Japan, and describe our company’s market strategy. After that, we will predict future prospects of our company.