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dependent on the import and export raw materials. On the contrary, on the negative side of the exchange rate appreciation is that many foreign currencies will inflows and arbitrage, which will lead the native economic bubble and threaten the safe level of economy.
4.2 The Depreciation of the Exchange Rate Impact on Companies

Moreover, the price of the imports products will be raised on some extent, in the view of import consumer goods, and capital outflows are prefer to happen because whatever the native investors or foreign investors are prefer to convert to foreign currency rather than willing to hold several types of financial assets in form of the local currency. As a result of accumulating foreign currencies, foreign exchange will be shortly and push the local exchange rate fallen. The domestic firms seem expand their market share and improve their markups when the depreciation happened. (Nicolas, Philippe and Thierry, 2012) For instance, the currency of China is renmingbi, which appreciation 3.9% and 2.9% compare with the US dollars in 2012 and 2013 repectively (World Economic Situation and Prospects, 2012), then the domestic commodity prices were more expensive for the buyers. These are the reasons why the exchange rate will impact on trading of import and output companies.

5.0 Measures of Companies to handle with the Exchange Rate Movements
The company operating main target is maximizing the corporate value, so for the multinational and firms’ business mainly on imports and exports, they have to meet challenges and take some relevant strategies to deal with the exchange rate fluctuation in order to assure the companies attacked by the exchange rate movements at the minimum level. When firms formulate the exchange rate management policy, firms should estimate the exchange rate risky at difference views and consider firms their own characteristics then take some actions to management.
Firstly, this kind of enterprises can change the trade settlement methods, using the fixed exchange rate and hedging instruments according with the exchange rate varies. Acknowledge the exchange rate basic movements’ regulations and principals, and strengthen the powers to avoid risk-averse such as buying long-term exchange rate products to fixed exchange rate, or complying with under the terms of contracts which special for the exchange rate provisions, or using the fixed rate to determine the costs.
Secondly, companies should improve senses of exchange rate risk management and reinforce the cooperation and communications with modern financial instruments to release the dangerous of the exchange rate happened. In other words, applying the exchange rate derivatives to draw up hedging programs effectively, based on the varies settlement methods, forward foreign exchange transactions, foreign exchange options trading and other financial tools can be used to protect the companies in the exchange rate markets. 
Thirdly, implementation of overseas investment strategy and enhance the response to the level of risk. Companies can analysis the products on kind of producing technologies, markets and costs carefully, then utilizing outstanding features to expend overseas investment directly. Afterwards, companies can invest some superior products in the native and participate in international trading positively, which combined with domestic and foreign resources gain本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。