Question

In: Finance

Foreign currency analysis of Merck & Co. which is s an American multinational pharmaceutical company and...

Foreign currency analysis of Merck & Co. which is s an American multinational pharmaceutical company and one of the largest pharmaceutical companies in the world.

Explain the relationship between the stock price of the company and those three currencies, Euro, Yen, and Renminbi which are the most exposed to the company and how sensitive the company's value is against the change in the value of the three foreign currencies against US dollar.

State references.

Solutions

Expert Solution

Merck & Co. is subject to many currencies. Yen and Renminbi are the most vulnerable to Merck & Co out of these Euro. This was due to the different production plants, manufacturing systems, testing facilities, personnel, customers etc.

Merck is a profitable multinational (MNC) company in many fields
countries and traditions. countries and traditions. By optimising its MNC status, it takes full advantage
Profitability as a whole (i.e. cross-border cutting; both US and international transactions)
As the amount of the profitability of each nation. Via this optimisation,
Controls in activities and accounting.

Owing to the volatile macroeconomic system, which has international and interest rates
Exchange rates continuously increase and decrease because of changes in factors such as
The extent of perceived national fiscal policy, monetary policy, and sovereigns
Merck 's risks, and the underlying monetary supply and demand features
End-dollar income will at any given time be exceedingly difficult to estimate.
All year long.

Treat differences between rating sources of knowledge
-- Fix recognition instance issues between the current sources--

-- to solve differences in formatting between sources, such as in scaling factors
Two-way reporting, news media, economists, and CitiLondon;
Exchange rates (although most sources can from the standpoint quote exchange rate
The smart text retrieval of the dollar may be rates, or rates expected,
and in foreign currency was quoted).
--

Although a risk management framework can be difficult to envisage without having the
strong interaction with the economists of the different banks Merck has with
Strong working relationships, improved information sources' performance.


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