A Preliminary Study on Forecasting the Foreign Exchange Rate and Preventing Exchange Rate Risk for International Construction Projects
Date Issued
2015
Date
2015
Author(s)
Shih, Yen-Hung
Abstract
Taiwan is an island country, and it construction market size is limited. For pursuing much more profits, contractors would like to bid for the construction projects outside of Taiwan. There usually have a lot of procurement items which are purchased in different countries for international construction projects. Therefore, contractors will have a lot of categories of currency during the whole project duration. Because of it, the risk of exchange rate cannot be avoided by the contractor who wants to bid for the international construction projects. In addition to using financial instruments, this research will develop method to forecast the foreign exchange rate to positively prevent the risk of exchange rate. Therefore, we use the technical analysis way to develop a strategy to forecast the foreign exchange rate. For preventing exchange rate risk, this study used the Karljic matrix to analyze the procurement items, using the natural hedge method to achieve preventing exchange rate risk as well as using forward exchange agreement to achieve that.
Subjects
International construction projects
exchange rate forecasting
technical analysis
preventing exchange rate risk
natural hedge
forward exchange agreement
Type
thesis
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ntu-104-R02521702-1.pdf
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