International Finance The most significant development in American Fertilizers Inc. as a multinational company since January 2014 is the execution of its strategy plan of going international. Overall exchange rate has decreased causing the company market to be stable enough in recent months. From the exchange rate, data for the last three months has fluctuated with an average rate of about 61.96.
This has caused the rate to have a minor change from the average exchange rate. The exchange rate has become stable on average even with a larger span of time due to the fluctuation. Exchange rate data shows a maximum fluctuation in the exchange rates between India and USA. This means that in the end, the use of forward rates has helped to ensure few losses due to exchange rate fluctuations; hence, the spot rates should be executed in the short run (Weber, Olaf, et al 281).
The study shows that, the Indian currency has appreciated as compared to the dollar. The trend in the Indian currency has been stronger in recent months and has gained value by more than 3.5%. In my view, this trend shows that the market has increased and if this trend will continue, the market in the future will increase hence market stabilization of the MNC in India.
The two nations, India and United States, the interest on foreign currency in India have increased with about 4 to 5 percentages whereas, in United States, about 1 to 2 percentages. This has caused that the interest rate in the foreign country to increase than that of U.S. This has been important to the MNC in India, as the interest rates in the host country have increased causing profit of the firm increase.
Weber, Olaf, et al. "Trade and finance as cross-cutting issues in the global phosphate and fertilizer market." Sustainable phosphorus management: a global transdisciplinary roadmap. Springer, Berlin (2014): 275-294.