© 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)
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
Is China set to become the world’s largest economy in 2015?
© 2015 Prof. Farok J. Contractor, Rutgers University The business press has been excitedly predicting the day when the Chinese economy will surpass that of the US in size. Just when this will happen has been a matter for debate—estimates have ranged from 2016 to 2025. In order to compare a nation’s economic size to that of … Continue reading Is China set to become the world’s largest economy in 2015?
The US – One of the World’s Most Competitive Manufacturing Locations?
© 2014 Prof. Farok J. Contractor, Rutgers University In 2012, I was one of the observers who indicated that American manufacturing productivity was, by far, the best in the world. (See my August 7, 2012 Yale Global Online article “7 Reasons to Expect US Manufacturing Resurgence,” which provided figures from the International Monetary Fund and the US Bureau of Labor Statistics.) In … Continue reading The US – One of the World’s Most Competitive Manufacturing Locations?
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