© 2015 Prof. Farok J. Contractor, Rutgers University After 20 years, the Chinese government must be used to it—being bashed by US politicians and Congress as a “currency manipulator.” Indeed, the exchange value of the yuan (or renminbi [RMB]) is fixed each morning by its central bank, the People’s Bank of China (PBoC), with a … Continue reading Is China a “currency manipulator”? Donald Trump says so
International Tax Avoidance: Clarifying Multinational Company Tax Issues
© 2015 Prof. Farok J. Contractor, Rutgers University The question of multinational companies avoiding taxes is inevitably going to become a hot issue for the US, Europe, and other major economies. Voices from both the political left and right have an ax to grind. Moreover, three separate tax issues—(1) the average tax US-based multinationals actually pay, … Continue reading International Tax Avoidance: Clarifying Multinational Company Tax Issues
Chinese Cyber-Espionage on US Companies: The Asymmetry in the Analogy of the “Pot Calling the Kettle Black”
© 2015 Prof. Farok J. Contractor, Rutgers University American companies state that their secrets are being stolen by Chinese hackers. US counter-intelligence says it has traced several of these attacks back to outfits sponsored by the People’s Liberation Army (PLA),[1] and that designs stolen from American companies’ computers have shown up—sometimes barely disguised—in Chinese companies’ … Continue reading Chinese Cyber-Espionage on US Companies: The Asymmetry in the Analogy of the “Pot Calling the Kettle Black”
The Refugee Crisis – Does Europe Benefit or Lose? The Angle Not Covered by the Media
© 2015 Prof. Farok J. Contractor, Rutgers University Put aside, for the moment, the horrific scenes of human suffering, the fears that some ISIS sympathizers may be part of the herd swarming onto European shores, and the large immediate costs of resettling and giving aid to hundreds of thousands of souls. Then consider this question: … Continue reading The Refugee Crisis – Does Europe Benefit or Lose? The Angle Not Covered by the Media
Capital Outflows from China and the Hidden Story in China’s FDI Statistics
© 2015 Prof. Farok J. Contractor, Rutgers University Permission to Reproduce: A version of this post was published as “The Chinese prefer investing overseas; dummy companies may ease transfers and devalue renminbi” by YaleGlobal Online, September 10, 2015; it was the number-one story in a Google search for “China FDI” that day and is also available as a podcast. The global panic … Continue reading Capital Outflows from China and the Hidden Story in China’s FDI Statistics
Hedging Transactions Involving Foreign Exchange Risk – A Primer: Falling in Love with a Puerto Vallarta Condo (Part C– Epilogue)
© 2015 Prof. Farok J. Contractor, Rutgers University CASE STUDY (C)—EPILOGUE: The Negotiated Settlement The two case studies presented examine foreign exchange risk from two perspectives: (Part A) An American couple has put a down payment on a lovely new condo in Puerto Vallarta, agreeing to pay 5,000,000 Mexican pesos on delivery of the condo in 12 months. (Part … Continue reading Hedging Transactions Involving Foreign Exchange Risk – A Primer: Falling in Love with a Puerto Vallarta Condo (Part C– Epilogue)
Hedging Transactions Involving Foreign Exchange Risk – A Primer: Falling in Love with a Puerto Vallarta Condo (Part B)
© 2015 Prof. Farok J. Contractor, Rutgers University CASE STUDY (B): The Mexican Sellers’ Perspective The two case studies presented examine foreign exchange risk from two perspectives: (Part A) An American couple has put a down payment on a lovely new condo in Puerto Vallarta, agreeing to pay 5,000,000 Mexican pesos on delivery of the condo … Continue reading Hedging Transactions Involving Foreign Exchange Risk – A Primer: Falling in Love with a Puerto Vallarta Condo (Part B)
Hedging Transactions Involving Foreign Exchange Risk – A Primer: Falling in Love with a Puerto Vallarta Condo (Part A)
© 2015 Prof. Farok J. Contractor, Rutgers CASE STUDY (A): The American Buyers’ Perspective The two case studies presented examine foreign exchange risk from two perspectives: (Part A) An American couple has put a down payment on a lovely new condo in Puerto Vallarta, agreeing to pay 5,000,000 Mexican pesos on delivery of the condo in 12 months. ... CONTINUED … Continue reading Hedging Transactions Involving Foreign Exchange Risk – A Primer: Falling in Love with a Puerto Vallarta Condo (Part A)
Updates: What the Iran Nuclear Deal Means for American Business
© 2015 Prof. Farok J. Contractor, Rutgers University Since I published the blog post What the Iran Nuclear Deal Means for American Business on July 14, 2015, it has received additional media attention. Please see the following sources: CBS News MoneyWatch – Online Article, July 14, 2015 The Conversation – Online Article, July 16, 2015 At Night – Corus Radio, Calgary, Alberta, Canada, with … Continue reading Updates: What the Iran Nuclear Deal Means for American Business
Why a Single Currency Works in the US, but Not Very Well in Europe: Three Minimal Conditions for the Eurozone to Function
© 2015 Prof. Farok J. Contractor, Rutgers University America has been using a single currency since 1793, when the United States Mint in Philadelphia first began issuing US dollar coins. However, it is not the longevity of a currency that determines whether it succeeds, but institutional mechanisms. Such mechanisms are weak or lacking in Europe. … Continue reading Why a Single Currency Works in the US, but Not Very Well in Europe: Three Minimal Conditions for the Eurozone to Function
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