Foreign Exchange Risk Prevention Research Of TBEA HengYang Transformer Co.Ltd.

Abstract:Along with China’s rapid economic development and international environment profound change, RMB has appreciated substantially and its value is expected to continue rise. All of this pose a great threat to those enterprises that are undergoing international integration-----the increasing of exports risk, who mainly deal with foreign trade exports. For these enterprises during the international market competition, one of the important issues can’t be neglected and has to be solve, that is how to prevent exchange rate risk.Based on the summary of the theory concerning about exchange rate and exchange rate risk management, this article analyzed the following questions:characteristics of export-oriented enterprises, the exchange rate risk, the impact of exchange rate risk and current situation on management. Concerning the common problem of export-oriented enterprises on foreign exchange rate risks management, TBEA Hengyang Transformer Co.Ltd, located in HengYang, was chosen as an example, the article proposes exchange rate risk prevention programs both on export strategy and export business. The article also analyzes the company’s export strategy, export contract terms and the use of financial derivatives in order to give a suggestion to on the method of screening and optimization which be used against exchange rate risk. And build a system in the perspective of the company’s business operation.