Transaction and Traselation Exposure Essay Example | Topics and Well Written Essays - 500 words

Transaction and Traselation Exposure - Essay Example s made by both the Indian and Australian subsidiary gave back less dollars on the combined income statement i.e., translation exposure, even with no earnings remitted back to the parent company (Homaifar, 2004). Jeeves (UK) plc’s combined earnings will be reduced by the translation effect brought as a result of depreciation of the British pound against the other international currencies. Because of the fact that foreign earnings are normally translated at the standard exchange rate over the financial year would eventually mean low value of foreign currencies yielding low level of combined income (Homaifar, 2004). Existence of purchasing power parity (PPP) means higher US inflation than that of Britain. Demand for Jeeves (UK) plc products may not be affected due to price inflation from US, Canada and other euro zones aimed at offsetting the British consumer capability to obtain cheaper dollars. The British consumers’ purchasing ability on Jeeves items of trade versus other country products are not affected by rise and fall in the pound value. The economic exposure of Jeeves, a heavy exporter to the euro zone would decline since no need currency exchange is vital. Likewise, translational exposure of Jeeves would decline since Britain’s economic statements will no longer need translation. (Homaifar, 2004). Multinational companies have the obligation of ensuring that they are capable of reducing risks associated with foreign exchange. This can be attributed to the undisputable fact that their earnings are reliant on the foreign exchange rates. Because foreign exchange rates can fluctuate either up or down which would mean a constructive or destructive effect on the Company’s real profit. This calls for knowledge on minimizing risks associated with the exchange rates if they are to maximize on their profits and increase company’s equity (Homaifar, 2004). Certain strategies employed by a company to minimize foreign exchange risks include, but not restricted

Human Resource Development and Management Critical Thinking Mod 5 Essay

Human Resource Development and Management Critical Thinking Mod 5 - Essay Example Every employee possesses different positive and negative qualities which need to be molded to meet the requirements of a business. Every individual has strength and weaknesses, but training brings out the best in an employee. Training alone cannot bring productivity and performance standard in an employed but a development process also need to be followed by the managerial level. As per (Career NZ) â€Å"Workplace training, also known as trade or industry training, involves learning and earning money while you work†. There are certain steps in training and development procedure and that need to be followed. Analysis: Analyzing means understanding and evaluating the abilities and skills of individual employees. This is the primary stage and an important one to initiate training process. According to (CMI, 2003) â€Å"Analyzing what the training needs are is a vital prerequisite for any effective training programmer or event†. Without a proper analysis training can procee d to be a disastrous process. In this stage, a training manger can glance deep into the positive and negative qualities of an employee. This helps the manager to assess the refinement needed in a person to come up as a quality staff. Planning: When a training co – coordinator or manager conduct analyzis, he has in mind the ways to plan a training procedure. As per (Johnson) â€Å"Designing an effective training program for an organization is a challenging task. You need to be highly organized and have a clear idea of what you need the training program to accomplish†. A training structure cannot be formulated if the individual employees are not studied in a calculative manner.Planning is secondary to analysis as only after analysis can a manger lay out what elements need to be included or excluded in a training program. As per(Ajlouni,2010,pg 56-65)â€Å"The process of identifying training needs is carefully thought out programmer that needs to be carried out with sens itivity because success of a training programmer may be crucial for the survival of the organization†. Execution :This is the third and a very important stage in training and development phenomenon. Here, the manager execute or put in practice the training plan. Here , each individual is educated about the organizational objective and the qualities needed for an ideal employee. During a training program , the main objective of a manager is to develop the personality and performance standard of the employees participating. As per (Seeklander,2009)â€Å"Sloppy attention to detail, or a lazy work ethic during training sessions will result in imprinting a technique wrong into our subconscious mind† Development: Development is the ongoing educational activity occurring in an organization as a part of a training program. A development process involves many educational techniques which will enhance the productivity and performance quality of an employee. In the journal, (Truit t, 2007) writes thatâ€Å"Positive training offered to employees may assist with reduction of anxiety or frustration, which most employees have experienced on more than one occasion during their employment careers†. Feedback – Feedback is an important process in all these stages of training and development session. This gives an outline and idea to the training manager about the experience of the trainees. According to (Raemdonck, 2012, pg24-48) â€Å"