Browse CFA Level 2

Chapter 11: Exchange Rate Pass-Through and Corporate Decisions

In this section

  • Pass-Through Mechanics and Pricing Strategies
    Explore how changes in exchange rates influence local-currency prices of traded goods, examining complete vs. partial pass-through, local vs. producer currency pricing, and strategic corporate responses.
  • Currency Volatility and Profit Margins
    A comprehensive exploration of how exchange rate fluctuations influence corporate profit margins, covering hedging strategies, operational considerations, and real-case scenario analysis, tailored for CFA Level II candidates.
  • Working Capital Management Across Currencies
    Explore how global currency fluctuations impact operational finances, from payables and receivables to short-term financing and treasury strategies.
  • Item Set Analysis: Reconciling FX Shifts and Corporate Policies
    Explore practical CFA Level II strategies for analyzing corporate currency exposures, reconciling exchange rate shifts, and aligning pricing, hedging, and operational decisions in item set vignettes.
  • Applications in Multinational Operations
    Explore how multinational corporations integrate exchange rate pass-through, pricing strategies, hedging, and capital budgeting to navigate cross-border challenges and drive global competitiveness.
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