Balancing International Insurance Portfolios and Exchange Risks

This paper examines the balancing of the investment and liability portfolios of a (re)insurance firm operating in the international market. The model captures two effects which are ignored by traditional analysts.(a) According to the Interest Parity Theorem, the expected changes in the exchange rates should already be reflected in the expected rate of return on foreign investments. Therefore, an insurer operating in a perfect market should be indifferent to the currency denomination of its financial assets.(b) A second effect which has often been ignored is related to the additional risk resulting from the unexpected fluctuations of the exchange rates.The multi-index model suggested in this paper is capable of capturing these effects. The model can be used to examine and analyze alternative policies of the firm operating in international markets. For example, the model can be used to examine whether an insurer should take positions in certain currencies, or rather take a “full-hedge” policy.

Download Full-text

ANALISIS PORTOFOLIO OPTIMAL DENGAN MENGGUNAKAN MODEL INDEKS TUNGGAL PADA SAHAM IDX BUMN20 DI BURSA EFEK INDONESIA JANUARI 2018-JANUARI 2019

JEM17: Jurnal Ekonomi Manajemen ◽

10.30996/jem17.v4i2.3023 ◽

2019 ◽

Vol 4 (2) ◽

Author(s):

Mochamad Andik Firmansyah

Keyword(s):

Stock Exchange ◽

Optimal Portfolio ◽

Rate Of Return ◽

Portfolio Risk ◽

Expected Return ◽

Purposive Sampling ◽

Single Index ◽

Index Model ◽

Market Return ◽

Single Index Model

Penelitian ini bertujuan untuk menentukan level of expected return dan the best risk of optimal portfolio formation dengan menggunakan Single Index Model pada saham IDX BUMN 20 yang tercatat di Indonesia Stock Exchange dari bulan Januari 2018 sampai January 2019. Saham IDX BUMN 20 yang tercatat di Indonesia Stock Exchange dengan populasi sebanyak 20 perusahaan. Dengan menggunakan populasi sebesar 20 perusahaan maka peneliti menggunakan purposive sampling, dan ternyata hanya 18 perusahaan saja yang ditemukan memenuhi kriteria penelitian ini. Penelitian ini juga menggunakan metode Kuantitatif Deskriptif. Analisa data pada penelitian ini untuk menentukan saham-saham mana saja yang termasuk the optimal portfolio, dan juga the level of proportion of 1 funds yang termasuk juga dalam kategori the optimal portfolio dan the level of expected return serta the best risk of the optimal portfolio yang terbentuk dengan menggunakan Single Index Model. Hasil dari penelitian ini menunjukan bahwa terdapat 5 perusahaan dengan kategori the optimal portfolio dari 18 sampel perusahaan pada saham IDX BUMN 20 dengan tingkat tertinggi dari level of proportion of 1 funds ditemukan pada PTBA share sat 1.89333 or 189,333%, di lain pihak dengan tingkat terendah adalah pada TLKM shares at -2.13488 or -213.488% yang berarti bahwa saham TLKM adalah negatif dan harus dijual dalam jangka waktu pendek sebesar 213,488% dari dana yang dimiliki oleh para inventor dan menghasilkan rate of return yang diharapkan dari formasi optimal portfolio sebesar 0.17583 or 17.583% lebih tinggi dari yang diharapkan oleh market return sebesar 0.00264 or 0.264% dan memiliki tingkat portfolio risk borne sebesar 0.10384 or 10,384%, lebih kecil dari the risk of market sebesar 0.03367 or 3,367% dan beta market sebesar 1.Kata Kunci : Portfolio, Optimal Portfolio, Single Index Model.

Download Full-text

THE PROCEDURE OF DEVELOPMENT OF INTERNATIONAL MARKET SEGMENTATION STRATEGY

Economic Analysis ◽

10.35774/econa2020.01.01.166 ◽

2020 ◽

pp. 166-182

Author(s):

Olga Prygara ◽

Viktoria Zhurylo

Keyword(s):

Market Segmentation ◽

International Market ◽

International Markets ◽

Individual Characteristics ◽

Entrepreneurial Activity ◽

Cultural Environment ◽

Market Demand ◽

Market Environment ◽

Segmentation Strategy ◽

Segmentation Process

Introduction. Increase of intensity of international economic activity under the process of internationalization of commodity markets lead to the necessity of search of attractive international markets and segments. Aim of the article is the development of procedure of international market segmentation strategy and determination of peculiarities of international market segmentation in comparison with segmentation of domestic markets, considering the necessity of evaluation of factors of choice of attractive markets, considering the influence of cultural environment on entrepreneurial activity. Method (Methodology). Application of methods of scientific generalization, analysis and synthesis gave an opportunity to distinguish elements, that characterize segmentation of international markets; to systemize the factors of international market environment, that influence international market segmentation process, define customers’ characteristics, that influence their purchasing decisions; to distinguish stages of international market segmentation; to describe features and marketing tasks of each stage. Results. Segmentation of international markets has to be viewed as the systematized process of division of international markets on the groups of countries and groups of individual customers on the basis of their cultural values and motivations concerning their decision making process, that gives an opportunity to satisfy their specific needs and strengthen international competitive positions. The factors that influence international segmentation process are macrofactors: geographic, structural-demographic, legal, economic, scientific, socio-cultural; and microfactors: common market factors (market demand, competitive factors, factors of quality characteristics of the product) and customer-based factors (psychological, behavioral, individual characteristics of customers). The stages of the procedure of developing of international segmentation strategy are: market attractiveness evaluation; competitive analysis; demand evaluation; cultural environment analysis; macrosegmentation of markets; microsegmentation of markets; implementation of strategy and control. The proposed strategy of international segmentation strategy requires forming of the detailed marketing plan to a certain market segment and constant monitoring of its realization in accordance with changes in market environment and motivations of customers.

Download Full-text

INDONESIAN COCONUT COMPETITIVENESS IN INTERNATIONAL MARKETS

Asia Proceedings of Social Sciences ◽

10.31580/apss.v1i3.390 ◽

2019 ◽

Vol 1 (3) ◽

pp. 46-50

Author(s):

Heriyanto Heriyanto

Keyword(s):

Comparative Advantage ◽

Supply And Demand ◽

International Market ◽

World Market ◽

International Markets ◽

Average Value ◽

A Value ◽

Constant Market Share Analysis ◽

Constant Market Share ◽

Derivative Products

Indonesia is one of the country's largest Coconut producer and exporter in the world market. The management efforts of Indonesia coconut not optimal, coconut export is still largely in the form of primary products, a type of derivative products coconut produced Indonesia is still limited. But in general, this research aims to analyze the Export Competitiveness of coconut Indonesia in international markets, specifically aims to analyze the position and competitiveness of Indonesia coconut commodities in the international market. Methods of data analysis using Trade Specialization Index (TSI), the analysis Revealed Comparative Advantage (RCA), and the Constant Market Share analysis (CMS). The results showed that during the period of 2005-2016, the development of supply and demand are relatively unstable and likely to rise. TSI values during the period of 2005-2016 have the value positive that shows that Indonesia is a country exporting coconut and belongs into the categories of very mature in the international market, indicated by the average value of the TSI of 1.00. The value of the RCA during the period of 2005-2016 have a value above 1 indicating that Indonesia Coconut has a comparative advantage for the commodity. While the analysis results in CMS during the period of 2005-2016 based on the four effects shows that the competitiveness of coconut Indonesia influenced by standard growth effects and efficient distribution where the coconut export growth in Indonesia is affected by the growth of coconut import world.

Download Full-text

Exchange Rates, Interest Rates, and Interest Parity

International Money and Finance ◽

10.1016/b978-0-12-385247-2.00006-8 ◽

2013 ◽

pp. 115-128

Author(s):

Michael Melvin ◽

Stefan C. Norrbin

Keyword(s):

Exchange Rates ◽

Interest Rates ◽

Interest Parity

Download Full-text

Global and local rhetorics at a public-facing private company: Studiocanal and French cinema

Contemporary French Civilization ◽

10.3828/cfc.2021.19 ◽

2021 ◽

Vol 46 (3) ◽

pp. 309-327

Author(s):

Christopher Meir

Keyword(s):

International Market ◽

International Markets ◽

Film Production ◽

Home Market ◽

French Cinema ◽

Private Company ◽

Production And Distribution ◽

Global And Local ◽

Made In

This article utilizes Canal+’s film production and distribution subsidiary Studiocanal as a way to understand both companies’ impacts on French cinema since the formation of the subsidiary in the early 1990s. As such, the article is structured as a chronology and an analysis of the major films made in French and financed by Studiocanal in terms of their critical and popular reception. The article also examines the talent relationships underpinning this production and the trajectories of the various stars, writers, directors, and producers who worked on the films as well as the executives who oversaw them. Finally, the article analyzes the corporate rhetoric that was advanced by both Studiocanal and Canal+ over the years to position itself in the French and international markets. Synthesizing these branches of the analysis and noting certain cyclical patterns, the article argues that Studiocanal’s relationship to French cinema has been complex and changeable, at times limited in favor of pursuing the international market, at times devoting ample amounts of rhetoric and resources to pursuing success in its home market. Moreover, the article demonstrates that the company’s production activities have helped to mold a generation of French filmmakers and industry executives who have in turn gone on to influential careers. Looking forward, the article concludes by arguing that by virtue of its size and scale as a producer and distributor, Studiocanal will always be a significant player in French cinema.

Download Full-text

The Challenge of International Market Segmentation in Emerging Markets

International Business ◽

10.4018/978-1-4666-9814-7.ch104 ◽

2016 ◽

pp. 2274-2293

Author(s):

Ramazan Nacar ◽

Nimet Uray

Keyword(s):

Emerging Markets ◽

Market Segmentation ◽

International Market ◽

International Markets ◽

Future Research ◽

Methodological Issues ◽

Research Directions ◽

Paradoxical Effects ◽

Key Issues ◽

Future Research Directions

Increasing paradoxical effects of globalization resulted in the increased homogenization and heterogenization of international markets. Globalization with its varying effects also increased the significance of international market segmentation over the last few decades. Despite the increased presence and usage of international market segmentation, in recent times, the rise of emerging markets have challenged the concepts and methods of international market segmentation. In order to address key issues of international market segmentation in emerging markets, this study briefly examined and assessed foremost conceptual and methodological issues of international market segmentation in emerging markets. Suggestions and future research directions are also provided.

Download Full-text

Challenges and Scopes of Pottery Industry

Pravaha ◽

10.3126/pravaha.v24i1.20234 ◽

2018 ◽

Vol 24 (1) ◽

pp. 147-158

Author(s):

Prakash Shrestha

Keyword(s):

Raw Materials ◽

International Market ◽

International Markets ◽

Grain Storage ◽

Pottery Industry ◽

The People ◽

Firing Pottery ◽

Descriptive Method ◽

Large Vessels ◽

Festive Occasion

Pottery is unique art of making artifacts from clay. It produces different kinds of clay and ceramics items such as flowerpots, water and grain storage jars, large vessels for distilling rice spirits called rakshi, cooking pots, tableware, stoneware cups, bowls, and plates, stoneware pitcher and mug, etc. This research aims to examine challenges faced by the pottery industries and to examine scopes of the pottery industries in Nepal. This research is based on the descriptive method. The results show that there is good scope in the this industry but the people involved in this industry are facing different kinds of challenges or problems like shortage of raw materials, manpower, and lack of space to dry the formed pottery, firing pottery, to store the finished goods along with the different raw materials. The sales of the product in the national and international markets are being increased. This industry is being affected by the change in lifestyle and different substitute products. The intermediaries get good profits but they face the problem of getting the products damaged, demand dependent on the festive occasion, problem of transportation, etc. Study shows that there is a huge demand for Nepali handmade ceramic products in the international market due to their improved quality. Buyers are willing to pay a premium for handmade goods, which are propelling exports. Pravaha Vol. 24, No. 1, 2018, Page: 147-158

Download Full-text

The Quanto Theory of Exchange Rates

The American Economic Review ◽

10.1257/aer.20180019 ◽

2019 ◽

Vol 109 (3) ◽

pp. 810-843 ◽

Cited By ~ 18

Author(s):

Lukas Kremens ◽

Ian Martin

Keyword(s):

Random Walk ◽

Exchange Rates ◽

Purchasing Power Parity ◽

Uncovered Interest Parity ◽

Power Parity ◽

Panel Regressions ◽

Out Of Sample ◽

Covariance Term ◽

Interest Parity ◽

Forecast Variable

We present a new identity that relates expected exchange rate appreciation to a risk-neutral covariance term, and use it to motivate a currency forecasting variable based on the prices of quanto index contracts. We show via panel regressions that the quanto forecast variable is an economically and statistically significant predictor of currency appreciation and of excess returns on currency trades. Out of sample, the quanto variable outperforms predictions based on uncovered interest parity, on purchasing power parity, and on a random walk as a forecaster of differential (dollar-neutral) currency appreciation. (JEL C53, E43, F31, F37, G12, G15)

Download Full-text

How Small Business Enterprises of Russia Attract Investments: Practices and Problems

Scientific Research and Development Economics ◽

10.12737/5966 ◽

2014 ◽

Vol 2 (5) ◽

pp. 47-54

Author(s):

Фомичева ◽

Irina Fomicheva

Keyword(s):

Public Policy ◽

Small Business ◽

Exchange Rates ◽

Interest Rates ◽

Growth Rates ◽

Small Businesses ◽

Foreign Investments ◽

Inflation Rates ◽

Business Support ◽

Capital Financing

Considered are possible sources of real investments for small businesses. It is shown how foreign investments in Russia make shifts towards securities market. Dynamics and structure of domestic sources of debt funds for fixed capital financing are examined. Considerable growth rates of the volume of investments is emphasized as well as growing number of sources of financing with substantial share of budgetary funds in the total amount of investment. Factors conducive to investment activities are outlined. Dynamics of mortgage lending, as the author shows, is not actually impacted neither by the dynamics of interest rates, nor by exchange rates ratio and inflation rates in Russia, while underuse of budgetary funds allocated for programs of small and medium business support proves that public policy in this sphere is inefficient.

Download Full-text