THE HEDGING EFFECTIVENESS OF FOREIGN CURRENCY FUTURES

This study provides an initial analysis of the hedging potential of the foreign currency futures markets. Numerous studies exist on the pricing efficiency and hedging effectiveness of the foreign currency forward markets, but little research exists on the foreign currency futures market. An adequate price history has only recently become available to carry out such an investigation. Minimum risk hedges and hedging effectiveness measures are presented for five currencies: the British pound, German mark, Canadian dollar, Japanese yen and Swiss franc. Analysis indicates the relative desirability of positions in futures contracts to minimize the risk of spot currency exposure. Results also show hedging effectiveness increases with the investment horizon.     

The Role of Markets,Technology, and Policy in Generating Palm-Oil Demand in Indonesia

Indonesia produces more palm oil and consumes more palm oil per capita than any country in the world. This article examines the processes through which Indonesia has promoted palm-oil consumption and some of the consequences of that promotion. Partial equilibrium modelling shows that Indonesia's remarkable increase in palm-oil consumption since 1985 is not largely attributable to population and income growth. Instead, much of this consumption growth has resulted from substitution away from coconut oil, facilitated by government policies on technology, pricing, distribution, and trade. The switch from coconut oil to palm oil in Indonesia was associated with increased land conversions to agriculture and diminished smallholder competitiveness. Despite lower rates of cooking-oil substitution in the future, simulations suggest that Indonesia's total palm-oil consumption in 2035 will be at least double that of 2010.     

Power priorities in buyer–seller relationships: A comparative analysis

Power, as a significant dimension of relationships, continues to be of critical interest in the inter-organizational literature. This article assesses how different relationship types and strategic foci are related to buyers' and sellers' power priorities. Contributing to the discussion of buyer–seller power priority areas as commercial detail, operational issues, strategic issues and attitudes, the research focuses on the influence of relationship types (new, approved, preferred, partnership) on these power priorities in B2B contexts. This is important as partnerships do not simply emerge, but evolve over time suggesting that for both parties there is a period that is transitory. Through a survey of buyers and sellers (n = 355), the research highlights that as partnerships evolve, relational issues complement, but do not supersede, the focus on commercial and operational concerns. Furthermore, within partnerships, whilst sellers' focus on strategic issues increases, it is the total power that grows and the influence agenda is extended, rather than re-distributed. Additionally, it provides detail on how power priorities vary and are differentially distributed between buyers and sellers in different relationship types. This paper contributes to B2B partnership and power theories, challenging assumptions about relationships and adding weight to the increasing suggestion that relationship success is overplayed.     

Public perception of dementia risk in the UK: a mental models approach

Abstract

Dementia is a leading cause of death in the developed world. A number of modifiable risk factors for dementia have been identified, yet lay knowledge on dementia risk is limited. A mental models approach was used to compare lay and expert knowledge of risk in order to identify target areas for lay education. This method assumes experts and laypeople use different cognitive representations to make sense of phenomena. Semi-structured interviews were conducted with 8 experts and 15 laypeople to construct mental models of dementia risk. Interviews were transcribed verbatim and entered into NVivo qualitative data analysis software for coding. Findings indicated that laypeople had some knowledge of modifiable risk factors but in contrast to the expert mental model, laypeople poorly understood the causal links between these factors and dementia risk. Lay participants were unsure of the interaction between modifiable and non-modifiable risk factors and primarily attributed dementia risk to ‘bad luck’. It is suggested that future dementia education could benefit by building upon a general appreciation of healthy behaviour with particular focus on explaining the causal pathways to dementia risk. Additionally, it may be productive to inform laypeople it is possible to ‘change one’s luck’ by engaging in protective behaviours.