Exchange Rates Essay Example | Topics and Well Written Essays - 2000 words

Exchange Rates - Essay Example For instance, let’s say goods are sold by a vendor in United Kingdom to a customer in United States on the first of January, and the customer has promised to make a payment in the next three months. In this case, the risk in question is that the price of dollar to the pound may change over the time period. This change may be on either side, resulting in an exchange gain to one party and loss to the other. Transaction risk often occurs in cases of sales/purchase of goods on credit with payment to be made at a later date, upon receipt of dividend from foreign investments and from borrowing and/or investing in foreign currencies. Transaction risk can be protected against by the use of various hedging instrument (DAVID WINSTONE, 1995). The other kind of risk that we discussed above is translation risk. It occurs when a company has various subsidiaries abroad and needs to consolidate its financial position for reporting purposes. It is pretty much possible that the various currencies in question (that of the subsidiary’s country and the home country) might not be performing well in relation to the host county’s currency and therefore show a very deteriorating position on the consolidated financial statements (PRACHI DEUSKAR, 2007). The best way to counter the impact of translation risk is to get involved in balance sheet hedging. The best way of doing so is making the foreign assets and liabilities equal so as to cut down the impact of any change that might occur in the exchange rates. The third and final case of currency risk mentioned above is economic risk. This risk overall affects the value of the firm in question. It refers to how the change in exchange rates affects the competitiveness of a business on an international scale. To make it simpler to understand, it’s not only the appreciation -or depreciation of a foreign currency to the home currency that affects a company’s operations, but also how a

Labour law and labour market regulation Essay Example | Topics and Well Written Essays - 2750 words

Labour law and labour market regulation - Essay Example In the case of Wiltshire County Council v NATFHE and Guy, the court was faced with the question of determining whether a part-time contract was for a fixed period or not. It involved Ms Guy who was employed at s a teacher and attended some teaching lessons but later the course was removed due to reasons such as under subscription amongst others leaving her without employment. When her contract was not renewed she complained of being dismissed unfairly claiming that she was protected by the Employment Protection Act 1978 which in its strict interpretation envisaged that hers was a fixed term contract The appeal court held that her contract was for a fixed term and the contract subsisted even if she had been technically dismissed. Stating that a fixed contract is one in which there was a defined beginning and end. Therefore, basing on the Wiltshire case, Joe can claim unfair dismissal on grounds of discrimination after which the case will be taken to a tribunal for determination This therefore means that there are certain provisions that must be met that include giving the employee the mandatory notice period required in order to terminate the contract and the steps to be followed in the termination process. 2 The employer can only terminate the contract for reasons amongst them non-performance of duties, job elimination and misrepresentation amongst other reasons and must be written in a statement to the employee.3 The employer is therefore required to pay their employees there severance pay or any other form of financial consideration that may be entitled to the employee. The termination of the employment of Joe must not be based on discriminatory reasons and therefore in any sort of remedy sought; the courts of law will determine the reasons for the termination of the employment. If Joe had an individual contract with his employer or was covered by a collective bargaining agreement, his remedies and compensation will be covered under the stipulations of t hat agreement that subsisted before the termination of the contract. In a jurisdiction such as that of the United Kingdom, the courts or the tribunals can hear the cases brought for wrongful termination of the contract of employment. If proven that the contract of employment between Joe and that of his employer was wrongfully terminated, the court has remedies that it can give Joe.4 One remedy available to Joe is that he can be reinstated back to the position or job he held previously before termination of the employment. The courts may also order for monetary compensation to Joe for the wrongful dismissal that will be calculated commensurate with what he previously earned.5 Question 1 (b) Dismissing an employee who has had a long-term history of illness or sickness is one of the major difficult decisions employers have to make when considering terminating the employment of a sick employee in the United Kingdom.6 An employer is entitled to dismiss but fairly an employee who is absen t from duty due to sickness that may be long-term in nature but there is a caveat that they must demonstrate that they have acted in a fair, sensitive manner.7 This means that