HBS Case: Hedging Currency Risks at AIFS Essay

Instructions: This case should be done individually. You should prepare a written analysis, and hand in two copies of your analysis on April 12 in class. Only hard copies of the case analysis are accepted. I will submit one of the copies to the Dean’s office for assessment purpose. Each student should also bring his/her own copy of the write-up to class, as well as the case itself, so that we can refer to the specifics in our discussion. The text analysis of your case should be about 3-5 pages (double-spaced). You should download the excel spreadsheet for the case at the Blackboard, complete the quantitative analysis using the spreadsheet, and attach the spreadsheet to your case write-up to support your arguments. Your write-up should begin with an opening paragraph that defines the main problem in the case and your recommended solution. The remainder of your paper should support your conclusion and recommendations. This support should be based on your definition of the problem and inferences that you draw from the facts of the case. Structure is important for your argument to be lucid and transparent. The grading will be based on the quality of your analysis and writing. Points will be deducted for grammar mistakes and typos. Your case should address the following questions: 1. What gives rise to the currency exposure at AIFS? 2. What would happen if Archer-Lock and Tabaczynski did not hedge at all? 3. What would happen with a 100% hedge with forwards? A 100% hedge with  options? Use the forecast final sales volume of 25,000 and analyze the possible outcomes relative to the â€Å"zero impact† scenario described in the case. 4. What happens if sales volumes are lower or higher than expected as outlined at the end of the case? 5. What hedging decision would you advocate? Key Problem The American Institute for Foreign Studies (AIFS) organizes study abroad programs and cultural exchanges for American students. The firm’s revenues are mainly in U.S. dollars, but most of its costs are in euros. AIFS sets guaranteed prices for its exchanges and tours a year in advance, before its final sales figures are known. If the dollar depreciates against the Euro during this period, AIFS’s cost would be higher when measuring in dollars, and negatively impact the firm’s profit. In order to hedge its foreign exchange exposure, AIFS can use an appropriate balance between forward contracts and currency options to achieve the goal. The Case with No Hedging If the exchange rate remains constant at $1.22/euros then AIFS will not incur a foreign exchange loss or a gain. It would cost $1220 per participant at this exchange rate. If the dollar depreciates against euro, the actual dollar costs would be above $1220, and then there would be a negative impact. If actual dollar costs were lower than expected, the impact would be positive. Thus, with a sales volume of 25,000 participants and the exchange rate rises to $1.48/euros then AIFS will be subject to a loss of $4,391,892. If the exchange rate drops to $1.01/euros then AIFS will save $5,198,020.

Morality of Drug Use

  In his book entitled â€Å"Thinking Critically About Ethical Issues,† Vincent Ryan Ruggiero formulated a criteria consisting of three elements, which criteria relates to respect for persons as a theoretical construct and a practical ethical standard for everyday decision making (Ruggiero, 78). These three criteria are obligations, moral ideals and consequences, which are all applicable to the determination of proper conduct in relation to drug use (Ruggiero, 79).Moral Ideals.Ruggiero explained his concept of moral ideals as distinct from obligations. For him, ideals are goals that characterize excellence, which goals are aimed at by different individuals (Ruggiero, 78). In particular, and in relation to respect for persons, he discussed that moral ideals assist a person in achieving respect for persons (Ruggiero, 80).He also explicated that moral ideals could be composed of various categories, such as the â€Å"cardinal virtues† of old and the theological virtues of religious thinkers. He likewise posited that moral ideals could vary from person to person, or from culture to culture (Ruggiero, 81). This is an important proposition, because the differences in moral ideals determine the differences in treatment given by each person on varying actions. Thus, one person could regard a moral ideal as more than just that, for example as an obligation that requires compliance.Applying this concept to the ethical issue of drug use, it would be concluded that the perspective could be viewed from a number of different perspectives, which also have varying moral ideals. This means that drug use could be viewed positively or negatively by different cultures or population, depending on their respective moral ideals.For example, a population of medical practitioners such as doctors would hold on to the ideal that drug use is necessary in certain cases, such as in situations of a disease or illness that could only be cured by the administration of particular drugs. On the other hand, a population consisting of the religious whose faith dictates the avoidance of drugs would hold on to the exact opposite moral ideal. Thus, an ethical decision hinges on the moral ideals to which the population concerned adhere, because such moral ideals determine the kind of ethical decision that would probably be made in any given situation.Obligations.Ruggiero also discussed the notion of obligations as a criterion for determining respect for persons. His concept of obligations refers to the element of compulsion into doing a certain act, as determined by the situation involved or the relationship between or among parties (Ruggiero, 80). He likewise explained that different kinds of situations and interpersonal relations dictate the kind of obligations that are imposed on a person.Viewing drug use in the light of Ruggiero’s concept of obligations, drug use could be ethically justified by formulating a situation such that the administration or pre scription of medicinal drugs and the corresponding use is seen as an obligation on the part of the doctor and the patient to maintain the latter’s good health and long life.Consequences.Finally, Ruggiero discussed the concept of consequences, which refer to the effects of an action on a person (Ruggiero, 81).   He states that the effects could be classified into beneficial or harmful effects, or grouped according to kind, such as whether they are physical or emotional (Ruggiero, 81).The most important aspect of Ruggiero’s discussion of the topic is his position that the benefit or harm caused by a specific act is determined by the impact of such an act on all persons involved, including the actor (Ruggiero, 81).This criterion is relevant in the issue of drug use, because ultimately, any ethical decision on this matter hinges on its effects on the user. Therefore, drug use could be ethically justified if it is shown that there are health benefits that could favor the user or his community. On the other hand, proof that drug use only leads to individual or collective harm would tilt the favor against drug use.In sum, Ruggiero’s three criteria are relevant in any discussion of the morality of drug use. These criteria provide practical knowledge with regard to the things that one should be looking at, prior to making an ethical decision.Works CitedRuggiero, Vincent Ryan. Thinking Critically About Ethical Issues. 6th ed.

British Rule In England

â€Å"Trade was Britain’s doorway to India. † (Bogard et. al. 4th par. 3rd sentence) The colonization of Asia is often referred to as the Second British Empire; the British East India Company India was successful in annexing the Indian subcontinent (India, Bangladesh, Pakistan, Myanmar), an extremely lucrative acquisition as it became a large source of revenue (British East India Company 1st par. 1st sentence). India is a country with a rich culture and a civilization far older than that of the British (Bessant 2nd par. 2nd sentence). Its identity has been forged long before the coming of Western Civilization.However, during the period of the annexation of the subcontinent, India was in a period of regional strife. There were wars being fought among the different governors in the territory. The local leaders were fighting each other as well as the foreign invaders. In â€Å"Did Great Britain Unify India? †, the authors think that when Great Britain first came to India, it was suffering a period of division (2nd par. ). The governors of India tended towards disintegration, leading to outrageous defense expenditures which continued with the conflicts against the British (Birodkar).The British made external changes that led India to desire and achieve national unity (Bogard, et. al. 4th par. ). An example of the unifying external changes introduced was the concept of a universal language. The British required knowledge of the English language to qualify for employment in the government. It was also taught in the universities. But the Indians did not completely accept the foreign language of the colonizers. The regional languages still exist today, and only a small portion of population speaks English.However, even if the Indians still speak in different languages and there is still no universal language in India, Hindi has become the official language. Hindi is taught in the elementary and high school level. English is taught in the college le vels, it is the language of the educated in India. (Bogard, et. al. ). The British also introduced western developments. The Empire built railroads, highways and ports across the Indian subcontinent to facilitate trade, built canals for irrigation and created public health measures to prevent diseases.On the flip side, the activities of the British were geared towards acquisition of economic wealth for Britain. (Bogard, et. al). According to Bidokar, â€Å"The policy of ‘Great' Britain was of a systematic annihilation of Indian handicraft industries by exposing them to the ruinous competition from the cheap machine products coming from UK. † (18th par. 1st sentence) A large bulk of the raw materials produced by India is acquired, at very cheap prices, by the Britain; then, later on, finished products are dumped back to India, resulting to very large profits for Britain (Bidokar18th par. 2nd sentence).This exacerbated the poverty of India (Bidokar18th par. 2nd sentence). Bidokar also believed that: Thus after nearly two centuries of living through the twilight of two ages of the dying feudalism and the deformed nascent newborn Capitalism, we inherited an economy which bore the worst features of both feudalism and colonial capitallsm at the dawn of our independence. (20th paragraph) Bogard et,al, on the other hand, claims that poverty in India is a result of improved health care. The public health measures created by the British led to lower infant mortality rates and population explosion.The caste system is a social system by which the members of society are divided into four groups which are ranked. These four groups are priests and teachers, rulers and warriors, merchants and traders and workers and peasants. In the Indian caste system, a person is born within a caste and has little means of improving social standing, except through reincarnation. The occupation and acquaintances of a person is also governed by his caste. The caste system has alr eady been criticized and attacked by various groups before the coming of the British, among these are Buddhists and Muslims.It was convenient for the British to strengthen the caste system when it first came to India (Bogard, et. al). It gave back the privileges of the priests and teachers which the Muslims had previously taken away. However, the changes in society introduced by the British weaken the caste system (Bogard, et. al). People of different caste started mingling in public transportation. British laws also do not allow a higher punishment for a person of lower caste from that of a higher one for the same offense. The advances in transportation allowed people of lower caste from other regions to pretend to belong in a higher caste in a different region.India is the birth place of Hinduism, Buddhism and Sikhism. Religion is a vital part of Indian life; it permeates all other aspects of life and culture. Religion’s impact is felt even on political matters. Moreover, i t constantly clashed with the western culture introduced by the British. As an example, the Sepoy Rebellion arose because the Buddhist soldiers believed that the British did not respect their religion. Christianity made its debut in India before the British through the Portuguese and Spanish missionaries. Later, Anglican and Protestant missionaries also helped spread Christianity in India.At present, it is the second largest religious minority in India; Islam is the first. Christianity also influenced Hinduism. Ram Mohan Roy, a hindu leader, was inspired by the story of Jesus Christ that he fought against the social abuses inherent in Hinduism. It was through his effort that the suttee was declared illegal. (Bogard, et. al) Another devout Hindu influenced by teachings of Christianity is Mahatma Gandhi. Mahatma Gandhi read the works of many west’s great thinker and the gospel of Christ’s He actions is greatly influenced by his readings, but he never lost his faith in Hi nduism or his Indian identity.(Bogard, et. al) The effects goes both ways, Ramakrishna, a Hindu missionary, roamed the United States and England to preach Hinduism. Lamb said: The fact that he had so successfully preached Hinduism in the very lands from which the Christian missionaries came seemed to prove that political subjection need not involve religious subjection. Hindus could be proud at least of the essential truths of their religion. The reaffirmation of Hinduism served as an emotional counterbalance to the damage to Hindu self-respect caused by British political domination.(qtd. Bogard, et. al. ) Religion spilled over Indian literature. The Ramayana and Mahabharata, considered as two of the greatest literature of all time, are familiar epics of the Sanskrit. It is written in verse and orally passed down. In more modern times, Indian literature is represented in the world by the works of Rabindranath Tagore and Allama Iqbal. The more lasting influence of Britain to India is in the field of sports. Cricket, a sport invented by the British, is India’s favorite past time (Bogard, et. al). In fact in the 1993At present, the ties between India and Great Britain are being kept strong by international trade. India and Britain entered into a partnership in 1993. Britain reported a 69% increase in bilateral trade after the partnership was entered into and several joint ventures have been signed between Indian and British companies. Britain is also the largest market for Indian trade services, this amount to 12% of the total IT service exports. Cited Works Bessant, Annie. â€Å"England and India. † Theosophical Publishing Co. 1921. http://www. theosophical. ca/EnglandIndiaAB. htm. Birodkar, Sudheer.â€Å"The Coming of European Colonialism. † http://www. hindubooks. org/sudheer_birodkar/hindu_history/landbritish. html. â€Å"British East India Company. † Wikipedia. http://en. wikipedia. org/wiki/British_Empire. â€Å"British Raj. â⠂¬  Wikipedia. http://en. wikipedia. org/wiki/British_Raj. Bogard, Medina, et. al. â€Å"Did Great Britain Unify India? † May 1, 1997. http://home. snu. edu/~dwilliam/s97/india/. â€Å"Indian Literature. † Wikipedia. http://en. wikipedia. org/wiki/Indian_literature. â€Å"Indo-UK Partnership. † http://www. google. com. ph/search? hl=tl&q=indo-british+partnership+initiative&meta=.

Medical Uses and Dangers of Marijuana Research Paper

Medical Uses and Dangers of Marijuana - Research Paper Example benefits and side effects. Although marijuana is not unique in that its implementation has both a series of side effects and benefits, this analysis will attempt to categorize this, discuss their nature, and draw inference as to the overall balance sheet with regards to whether medical marijuana is worthy of continuing to be used as a drug due to the preponderance of its inherent benefits or should be discontinued as a drug/treatment as a function of the risk it poses to the individual. First and foremost, the analysis will need to consider the question of what specific disease is attempted to be treated with marijuana. This issue is central to a full and nuanced understanding due to the fact that medical marijuana basically breaks down into two subgroups (Gold 29). The first of these is concentric upon how the drug can assist terminally ill patients in reducing the overall level of pain they experience before eventually succumbing to a known disease. Secondly, medical marijuana has been known to be used to assist those patients who are not necessarily predisposed to death in that it has been used to treat patients with glaucoma and those patients who are undergoing heavy doses of chemotherapy/radiation. ... These include but are in no way limited to the following: lip cancer, tongue cancer, cheek cancer, esophageal cancer, and lung cancer but to name a few (Cohen 655). Similarly, it has been proven that smoking marijuana also demonstrably weakens the body’s immune system. This is of vital importance to many individuals who will be taking it to assist in providing them with a means to survive a given illness or extreme situation that requires such a method. In this way, the individual is likely to prolong the amount of time that they are suffering from an illness due to the fact that the prolonged use of marijuana has a negative effect on the total white blood cell count and the body’s inherent ability to fight off infection. In addition to the increased risk of a litany of cancers, the user is also at a highly increased risk of respiratory illness due to the fact that inhaling the smoke from even 1 joint per day can noticeably affect the bronchial linings in the air way wh ich serve to protect the individual from a host of airborne viruses. Additionally, as many people are well aware, the amount of tar in a single cigarette is itself one of the most harmful factors of smoking as it is this specific action that causes a plaque like buildup to form within the lungs of the user over time (Earlywine et al 234). A little known fact is that a single joint contains 4 times the level of tar as a single cigarette. In this way, the individual can see that even smoking a single joint per day is the equivalent of smoking 4 cigarettes with respect to the overall level of tar and the negative health effects that this portends for the user. As well as

Supply-Chain Flow Management Case Study Example | Topics and Well Written Essays - 4750 words

Supply-Chain Flow Management - Case Study Example   Gaining customer loyalty is a corporate challenge today in this increasingly competitive and crowded marketplace because of the eventual profitability it will provide. The changing business world allowed customers to change as well. Company management had shifted their focus on their clients or customers so as to stay successful in business with the need to completely reformulate their conventional business aims and purposes from being process-focused to customer-centred. With the advent of technological innovations, logistical decisions about delivery operations, stockholding, warehousing and economies of scale get more complex solutions in today's business environment. According to Bowers, Martin and Luker (1990), supply chain management is considered as one of the most important strategic aspects of any business enterprise where decisions about coordinating of production of goods and services, store inventory, list of suppliers, and cost-effective and timely distribution are made. Supply chain management functions in order to design and manage the processes, assets and flows of material and information to answer the needs and demands of the customers and clients. The supply chain is traditionally characterized as a stable system in which components and goods move smoothly from supplier to assembly customers. In addition, supply chain refers to the suppliers, distributors, wholesalers and retailers that involved in manufacturing a product and getting it to consumers (Lee & Billinton, 1995). A supply chain is also defined as a network of independent or semi-independent corporation bodies collectively accountable for procurement, developing and or manufacturing and distribution scheme connected with one or more groups of related products (Janyashankar et al, 1996). Research study shows that supply chains increase in their complexity as the number of nodes increases (Bacharach and Lawler, 1980). They also argue that genetic algorithms can be an efficient method to locate a good solution quickly in one to fifty node networks. Supply chain design models are making decisions worth millions of dollars, usually without integrated analysis of the variability of the proposed system (Hane & Sudar, 1998) McKinnon's interview study found that Supply Chain managers are responding to such pressures by such actions as increased backloading, improved vehicle routing, greater load consolidation, the redesign of packaging and changes in the ordering system (McKinnon, 1998). As such, companies at present are deploying supply-chain management (SCM) systems to enhance efficiency across the product lifecycle by streamlining procurement, production, fulfilment, and distribution processes. To help ensure that an SCM solution provides the intended return on investment, the enterprise network infrastructure must work together seamlessly since its effectiveness depends on the ability of users to access up to the minute information across the supply chain. Organizations usually share proprietary corporate data with external suppliers and partners while ensuring maximum security. This requires integration of applications and data across multiple geographically dispersed supply chain partners, as well as internal integration with legacy systems.  

Project Management Coursework Example | Topics and Well Written Essays - 750 words

Project Management - Coursework Example Having a team willing to follow is what marks a good leader’s success, and that only comes when a leader is capable of being followed. Having focus, direction and dedication will likely be more effective in uniting a team than being given authority, whether formal or informal. For example, I was once a part of a team which had no formally appointed leader but rather had an informal self-appointed leader in one of my fellow members. As our project proceeded, differences arose between the team and that leader based on conflict of goals. Despite not being a leader, formally or informally, I stepped up by taking into account the views of my team and then uniting us all on a commonly agreed goal. As we proceeded to work towards that goal, I found my team turning towards my lead as I expressed not only my capability of achieving that goal but also my desire to unite us and work cohesively. The creator of Dilbert, Scott Adams states ten Great Lies of Management. These statements have not been made by many project leaders as these statements are not appropriate to be stated in the initial phases of the project. These comments may act as an obstacle for maximum productivity to be derived from the employees. If these comments are given by the project leader, then the employees may overlook the importance of understanding the way the project has to be done and instead divert their focus towards the rewards that are to be given. In open door policies, employees may come up with unnecessary issues that may not be having any productive result. Successful leaders do not plan failures; they plan the path to success. By stating the management lies given above, the employees would be kept in darkness about the true scenario of the organization and its current financial standings.  

Palestine by Joe Saco Essay Example | Topics and Well Written Essays - 500 words

Palestine by Joe Saco - Essay Example On reading Joe Sacco’s graphic creation ‘Palestine’, I had my personal encounter of Palestinians under tumultuous state of oppression. It was as if I inevitably swam from the surface down to depths and depths of grievances which the Palestinian nation has every right to raise against the bureaucratic Israel. For one, Palestinians must be delivered from taking the ordeal of battling with armed Israeli soldiers who ruthlessly torture them to psychological, emotional, and physical deaths. Second of all, they deserve more than to grieve or wail at occupied territories which drove them out of their homes since the 1960s, making them live in inhumanely poor shelter conditions as refugees dwelling in camps without paved roads, proper roofing nor toilets as depicted in Sacco’s reports – a picture worse than an abandoned civilization. Moreover, I personally advocate support for Palestinians who express grievance for the absence of fair trial when their family members are put to jail at Israeli’s unjust discretion. The enemy’s brutish behaviour of inflicting extreme physical harm against the innocent in jail who barely know the grounds for their suffering must be highly condemned indeed.