This paper tells that the trends for the foreign exchange indicate that XJP lost 60 million Renminbi in 2003 and other 70 million in 2004. Foreign exchange gains and losses have a significant impact on XJP’s corporate performance since it fully depends on how the foreign currencies behave towards each…
XJP receives virtually all its supplies directly from J&J Ltd, which, in turn, invoices all the costs and expenditures in Euros. On the contrary, XJP makes its sales in Chinese Renminbi. Therefore, it has to convert the income made from the sales from the Chinese currency into the Euros so that it can submit its payment to J&J Ltd. This means that the amount XJP pays to J&J is not solely dependent on the value of the supplies it receives from this company, but also on the rate at which the Chinese currency exchanges for the Euro. This system is too risky for a business since when Euro gains value over the Renminbi, the difference in that gain becomes an extra cost for the XJP to meet (Coyle, 2000, p. 40). The situation becomes worse if the rate of exchange keeps fluctuating from time to time since the business cannot make any strategies for profit or even plan to grow its profits.
Therefore, the foreign exchange gains or losses primarily determine the performance of XJP, contrary to the normal business situation, where the performance of any business is determined by the sales and revenues it generates in relation to the costs it incurs in its operations (Kenen, 1994, p. 663). Where there is a financial gain for the local currency (Chinese Renminbi), which would occur in a situation where the exchange rate for the Euro drops, then XJP is in a better position to improve its performance and profits, since it will cover its expenditures at a lower cost. However, if the foreign currency gains over the local currency, XJP will be forced to pay the cost of supplies at higher costs. This will, in turn, reduce its profit margin (Moffett, Stonehill & Eiteman, 2008, p. 254). ...
Cite this document
(“Xian Janssen Pharmaceutical Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/553435-xian-janssen-pharmaceutical-and-the-euro-case-study
(Xian Janssen Pharmaceutical Essay Example | Topics and Well Written Essays - 1250 Words)
“Xian Janssen Pharmaceutical Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.net/finance-accounting/553435-xian-janssen-pharmaceutical-and-the-euro-case-study.
Corporate governance is the collection of procedures, civilization, rules, regulation and institution influencing the method a business is expressed, managed Controlled. Corporate governance is mainly analyzed as equally the arrangement and the relations which decide corporate way and presentation.
With this in mind, inventor of new pharmaceutical drugs could actually protect themselves from other people who wish to imitate and reproduce the said drug (IUS Mentis, 2011). It simply means that pharmaceutical companies who own patented drugs have the legal right to file a fraud case against any business entity or person who will be proven guilty of imitating a drug that has already been registered under the patent laws (Bently & Sherman, 2001).
It is important to note that the industry is subject to numerous laws and regulations which address the industry's activities pertaining to testing, patenting and marketing of drugs. One of the most controversial areas of pharmaceutical industry is the aspect of marketing which has elicited a lot of criticism owing to the fact that the industry marketing strategies is affecting both the patients and the professionals.
However, prior to testing the drug in humans for the first time the following requirements have to be met: The study drug must have undergone preclinical research in the laboratories needs to be undertaken to determine which compounds will result in a chemical effect on the disease, and the drug compound will have to have been placed in a living biological system to check for safety in human disease, which involves testing the compound in at least two animals.
If we place numerous hindrances in His path, and do nothing to remove them, how can He come to us' And yet we wish God to grant us great favours!
Christianity preaches saintly faith, which is essential for everyone to receive favours from God (cf. Hebrews 11:6).
The presence of chromophore is not necessarily sufficient for color. To make a substance colored, the chromophore has to be conjugated with an extensive system of alternate single and double bonds as exists in aromatic
They have not only influenced human beings but has brought drastic changes in animal and plant kingdoms. It is therefore pharmaceuticals have affected the inhabitants of the planet by making life more expedient and trouble-free, it
With this research and patent, a lot of costs are incurred before this medication is introduced to the market. The pricing for this patent is very steep but once the medication has patent protection, the
According to the author, the production of a drug in this industry involves testing to eliminate any chances of dangerous or life-threatening side effects in the final product. The Food and Drug Administration of the US Government tests and approves all pharmaceutical products in America before such products reach the pharmaceutical market.
3 Pages(750 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Xian Janssen Pharmaceutical for FREE!