Billabong Case Assignment Example | Topics and Well Written Essays - 500 words

Billabong Case - Assignment Example Secondly, when Billabong obtained payment from the merchants, thus it will be translated back into Australian Dollar for application in Australia. As Australian dollar depreciates, the receiving in United State can be interpreted into more Australian dollar than before, bringing rise in trade revenues. The impact of 35.6% depreciation in value of Australian dollar in the subsequent half 2008 was echoed in the interim account ended Dec 2009, with trade revenues in the United States improved by 33.9% (to $385 million). One can envisage the future exchange price by using forward trade rate. In times of fiscal crisis, the forward business rate is not a fine predictor since the market is incompetent. In an inadequate market, Fundamental advance can be employed for forecasting, footed on economic theories and study of variables. Though it is not efficient in forecasting the short-term variations in trade rates, also it is ample as there would constantly be fluctuations that would not be anticipated. Another advance could be using technological analysis to establish the movement of cash by analyzing historical information. This approach is supposed to be a ball that is crystal since there is no hypothetical rationale. The financial catastrophe has caused unanticipated variations in the value AUD. Press prediction for the trade rates predictions of two thousand and nine in the late two thousand and eight were towards continual reduction. It was 67.83 United States Dollars on Christmas Eve two thousand a nd eight. What happens in the foreign exchange market can have a fundamental impact on the sales, profits, and strategy of an enterprise. Accordingly, it is essential that Billabong managers could have understood the foreign exchange market, and what the result of variation in currency trade rates might be for Billabong. 4. The Australian dollar continued to rise by another 20 percent against the U.S dollar in 2010 and 2011. How would this have affected