The USPTO Registered Logo Badge of the Medical Marijuana Initiative of North America - International Limited, an Arizona Benefit Corporation to the left of Mt Hood sunlit from the northwest in June followed by the proprietary MMINAIL octocopter delivery bot.

Forex Pairs


Welcome! This is the Forex Lesson - Forex Pairs page of the MMINAIL.


Operational Hedging


In America, as the USD appreciates, some companies within certain industries are affected negatively to the point their stock prices fall.

While still others are affected oppositely, their stocks go up right along with the dollar appreciation!


Market Beta


This correlation can be deduced as a dance between a company's market beta and its forex beta, or its propensity to change relative to the Standard and Poors 500 Index, or SPX and the Dow Jones FXCM Dollar Exchange Index, or US DOLLAR respectively.

For example, tobacco companies grow and manufacture their product here in the United States and then sell a great share of their product internationally where the demand for tobacco products has not been so tamped down by anti-smoking rhetoric.

Because tobacco processing and sales is such an old, stodgy industry ... The stock of companies engaged in the manufacture of cigarettes, for example, move at a more stable rate than the Standard and Poors 500 Index.

As a consequence, their market betas have been traditionally less than one ( β < 1.0 )


Forex Beta


However, because of their international sales, when repatriating their efforts ...

The tobacco companies must convert from the local currency of sale, back into USD.

And, when the American dollar strengthens, most other currencies weaken to various degrees thus clipping the expected take when converting back to USD.

On the other hand, the Forex beta of a domestic American tobacco company may be negative, thus denoting an adverse change in stock price whenever the American dollar appreciates.


Translation Exposure


Why is this so?

Because the less number of expected American dollars (USD) received upon conversion of the underlying currency will depress the operating earnings of an international division extracting sales from a foreign country upon translation.

This form of exposure to the currency markets is called Translation Exposure and represents the phenomenon when translating earnings from one foreign subsidiary back into American dollars (USD), the risk of receiving less USD than expected is real.


The Donald and the Ford


Why then did Ford stop plans to open up a new $1.6 billion (USD), or ₱35.2 billion (MXN) assembly plant in Mexico ...?

Was it because Trump said so?

The short answer is "No!" ...

But, Trump's rhetoric started the "sell-a-thon" in Mexican pesos which led to Ford's decision to defer until a later point in time when the currency has settled.


Enter the Peso MXN


Mexico is a relatively small international market yet the people of Mexico purchase approximately nine-percent ( 9% ) of all U.S. exports of goods and services, one-half ( 1/2 ) of which originate in Texas.

Oh! Sorry!

Trump didn't tell you all Texicans that he was gonna mess with your honey pot, too?

Well, he is ... and, already has!

So, the $64 dollar question is "Can the prices of those goods and services be raised in MXN to compensate for the increase in value of the USD?"

If you as an American exporter to Mexico were expecting to receive $100 USD for your goods or services ... But, instead are now receiving back $60 - $65 USD because of the MXN currency decline ( for the same amount of pesos bargained ), can you then raise your prices in MXN to compensate for your loss in USD?


Elastic vs Inelastic Demand


The good news is that the demand for unique products tends to be highly inelastic, or price insensitive.

Thus, a company that produces a unique product should be able to raise its prices in terms of the now declining MXN to compensate for the change in currency value experienced by a now stronger "greenback", or USD.

This act, however, may invite competitors to enter the market long term, but over the short term, losses can be trimmed without too much risk to the volume of units moved ... By simply increasing the price of your goods denominated in Mexican pesos.

Woe unto the Mexican consumer, however, if you do this because now the Mexican consumer is experiencing price inflation.


Greater Wages


To compensate, the Mexican consumer will have to demand greater wages to maintain their standard of living.

This is a classic "price - wage" inflation cycle and is being practiced by the new Trump administration even prior to his inauguration.

If your product is not inelastic, but rather elastic ... That is to say ... Volumes of units tend to be very sensitive to the price you charge, up or down ... as in eggs and chickens ...

Then, you as an American producer selling your product in Mexico will not be able to raise the price of your product in MXN without dually causing thoughts of disintermediation within the minds of the consumers of your product.

Regardless of whether or not those consumers are Mexican, or Mexican - American ... You will also be inviting the Mexican competition to eat your market share while the currency advantage is theirs!


The Market For Autos


The market for automobiles is highly refractive causing price to be quite the sensitive item when consumers consider the purchase of "like" vehicles.

One way a company can hedge against currency fluctuations outside of its native country of domicile is to hedge operationally.

In the past, under the effects of the NAFTA paradigm, relocating (replacing) employees and manufacturing and research sites may have been a practical and cost-effective way of dealing with exchange-rate exposure long term.

Today, however, another variable exists.

When the President-elect of the United States is threatening to slap a 1928 style 25% Tariff tax on ANY automobile manufactured in Mexico that attempts to be sold back into the American market going forward, the nature of fiat money as it is will move the currency in that direction.

While costs associated with the assembly of a product may be denominated in the falling peso, a great lion's share of the parts do come from manufacturing facilities in the United States and elsewhere besides Mexico.

Hence, the equation becomes one of the present value of the initial investment and the components priced in MXN less the present value of the now Tariff taxed revenues received in America along with the components priced in USD.

There is also a possibility, however remote, that the underlying property and the finished factory may actually appreciate in terms of the MXN when the dollar strenthens, thus mitigating the effects of any exchange currency decline.

The idea is that ever cheaper pesos will invite buyers who will then bid up the price of factories and other forms of operational real estate to counter the decline of the MXN on the FOREX exchange.

However, given the uncertainty of where the Mexican peso will land "this time" based on where it landed in 1993 - 1994 during that two-week round of market restructuring at the dawn of NAFTA ( -37% ), Ford simply decided to delay action until the currency has become settled.

Indirectly, yes ...In these times of "fiat" money, Trump and the GOP through their rhetoric may be to blame for this pre-mature move downward in the MXN.

For sure, consumers in America will now have less choice going forward favoring only foreign and domestic factories that have set up assembly in America.

Unless, of course, American consumers can continue to cross the southern border without restriction to take advantage of the now lower peso.

As long as the new administration does not add an additional duty upon American consumers when attempting to repatriate themselves and their new found goods back into the United States, the decline in the MXN may have a silver lining.

Dental work, for example, a service with components priced in pesos should be lower now in Algodones, MX.

Directions. Drive about 5 miles east of the Arizona - California border on Interstate 8 out of Yuma, then turn south towards the California border crossing with Mexico in Winterhaven, CA by taking Exit 166 south at the Algodones Rd. - Quechan Tribe Casino Exit.

Americans crossing the border to improve their smiles ... Though hassled by the US Border Patrol on the way back in, currently have to declare "No Duty"" on simple purchases of antibiotics and other pharmaceuticals prescribed by Mexican dentists and purchased from reputable Mexican pharmacies across the border while getting their dental work performed.

Nor does a duty currently exist on the new crowns placed on American teeth by Mexican dentists.

But, other products flowing back into America through more direct routes, such as automobiles manufactured in Mexico, may not be so lucky.


Protective Tariffs


The act of setting up preventive Tariffs on products entering the United States from abroad can either firm prices domestically ... Or, the more likely scenario ... The slapping of Tariffs on imported goods will allow American manufacturers to raise their prices domestically.

The economy of Mexico may not falter from ONE less company requesting the purchase of Mexican pesos to fund their property acquisitions in Mexico pulls out.

But, a dearth of foreign direct investment into Mexico will put a damper on the prospects for further Mexican economic prosperity.

Still, the ongoing costs that can be denominated in cheaper pesos i.e.) the final assembly of a product destined for the American market chock full of Mexican made components may get a boost from the lower peso when priced competitively in the United States sans Tariff.


Selling Breeds More Selling Until Exhaustion


From the old trading range ( exchange ratio ) of ten to fifteen pesos per dollar ( 10 - 15:1 ) after the financial crash of #2008 to the new year #2017 "distressed" twenty-two to one ( 22:1 ) exchange ratio stemming from the general election of the New Yorker Donald Trump in November of #2016, this is no time to try to "bottom fish" the MXN.

Alternatively, Ford could try to borrow money from Mexican banks denominated in Mexican pesos at the going borrowing rate to hedge any property - factory investments by repaying the debt with every cheaper pesos.

As a result of the FOREX selling spree in MXN and the lack of any super-intervention in the marketplace by the Federal Reserve Bank of Mexico, there are plenty of pesos to lend at the going rate.

But, the threat of taxing sales imported to the American market via a repugnant 25% Tariff in USD ...

Would place a greater percentage of projected vehicle ownership in the hands of Mexican consumers who are already experiencing the new paradigm of the declining peso.

Not a very comforting outlook to the central planners at Ford when contemplating American consumer purchases of their Mexican produced vehicles.

Thus, in order to justify the construction of another plant in Mexico today without projected sales to American consumers, a more local flavor to the decision by Ford to discard rather than venture further prevails.

Factoring in the effect of the "price - wage" inflation pull upon the Mexican consumer now that any good or service imported from America costs an additional thirty-two percent (32%) in market adjusted Mexican pesos ...

Such as an American made Ford Mustang ...

Will tend to restrict purchases, rather than ameliorate trade ie.) make something bad or unsatisfactory better.


Questions Unanswered


Meanwhile ... On the other side, "El otra lado" ... In America ... The effect of "cost deflation" upon the American manufacturer that sources Mexican components imported from Mexico ( sans the proposed 25% Tariff tax ) will allow fatter profits to flow to the American manufacturer currently without any boost in real price needed.

Is this the way President Trump plans to extract his alternative tax of $10 billion USD to build his wall along the Mexican - American southern border?

What is the magnitude of the capability of the Federal Reserve Bank of Mexico when intervening to support the price of the peso ( MXN ) from falling further?

Your forking of this page to add additional insight to this topic is greatly appreciated.

Simply download this repo to your desktop, make your changes, and forward a pull request via GitHub.

I'll review your changes, add your work to the page if agreeable, and cite your contribution.

If you would like to donate in other ways, please follow the following hyperlink.

Thank you in advance for your contribution to the Carbon Free Footprint Project.


Forex Disclaimers


Futures and Options trading have large potential rewards. But, at the same time ... also large potential risk.

Dear Reader:

You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets.

Please DO NOT trade with money you cannot afford to lose.

This disclaimer is neither a solicitation, nor an offer to Buy or Sell futures, stocks, or options on the same.

No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this document, if any.

Note. The past performance of any trading system or methodology is not necessarily indicative of future results.


CFTC Rule 4.41


Hypothetical or simulated performance results have certain limitations.

Unlike an actual performance record, simulated results do not represent actual trading.

Also, because the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.

Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight.

No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

jQuery Library


Note. This page has explicit access to the local jQuery library as well as a local complimentary working (.js) file.


More to come ...


Sources and Uses


The source and use of 3rd party materials in the creation of this Html page is greatly appreciated.

Most authors and publishers will allow for the abbreviated reproduction of their works in part when the case of brief quotations or ideas embodied in critical articles or reviews becomes necessary to further the understanding of the end-user's learning process.


Ping Back


Indeed, ping-backs to the original sources are welcome by the readers, the authors, and the publishers of instructional hard copies.

Therefore, it is the policy of the MMINAIL to always provide a Ping Back to the original author, or to the publisher of the original publication when citing 3rd party work.


Inline References


  1. The MMINAIL is an acronym for the Medical Marijuana Initiative of North America - International Limited, an Arizona Benefit Corporation. Published by © 2017 Mminail.github.io.

External Sources


Supporting Content


Welcome! This is the Supporting Content section for the MMINAIL Central Live Repository.


E Books


With today's explosion of modern devices, some consumers like to read their articles on their Kindles or iPads.

Therefore, a method to convert any page of this website into an 'eBook' is auto-built into the top of the navigation stack as well as in the footer of every page.

Simply click the small dot epub button eBook icon to render the current page as an Overdrive (.epub) or a Kindle (.mobi) for external reading.

Note. The Apple iBooks platform also reads and displays the (.epub) format.


The A's Have It!


In today's complicated world of coding, even the use of the standard hyperlink has come into question.

Therefore, to make it easy for the end-user, this User Interface, or UI will show safe internal links in the bootstrap default color of light dodger blue.

On the other hand, external links, when designated https secure ... Will be shown in the color of forest green.

All other external links designated with standard http will be shown in the color of indian red.


Acronyms


For an acronym to be visually effective when reading a line of text, the acronym must first be declared.

In addition, the acronym must stand out from the body of information.

To accomplish both of these objectives, the authors have selected Ashley Gold, a primary color within the registered logo badge of the Benefit corporation for which to highlight acronyms.

Whenever the end user spies a designated acronym of Ashley Gold color, simply hover over the acronym to reveal the underlying meaning of the acronym letters.


Screen Responsiveness


This page has been tested for mobile responsiveness on a virtual Galaxy S5 smartphone emulator.

The authors have determined the accuracies of the page renderings at both a portrait width of 360px and a landscape width of 640px.

In addition, pages are also tested against an Amazon Kindle Fire HDX 7, 3rd Generation tablet.

On the Kindle tablet, both portrait and landscape renderings appear accurate, as well.

And, on the Amazon Fire phone, using automatic screen rotation, both portrait and landscape renderings appear accurate.


How To Navigate This Website


  • The Navigation to your right is set up to return to this Home page by clicking on the Home icon   south of the divider.

  • To select any of the other topics or subtopics, simply click on the corresponding glyphicon to open up the referenced file.

  • If you get stuck, simply click on the Home icon   below the divider to be hyperlinked back to this Home page.

Got An Idea?


If you have an idea that will spruce this site up even better than it already is, then you know the drill.

Simply go ahead and fork this repo, make your changes, and send me a pull request.


Site Monitoring


Note. The Http Headers of this repo are being monitored by Internet Supervision dot com


25 Mile Rule


The MMINAIL is dedicated to the preservation of the hard-earned rights of Medical patients to grow up to (12) state-legal Medicinal plants.

In a connective cartography of ideas and hyperlinks spanning the entire connectome of the modern Medical Marijuana Initiative ...

The open source authors of this project hope to enlighten the world to the plight of the common medical patient.

Due to a labyrinth of government regulations and costs, today's common medical patient is virtually devoid of healing phyto-cannabinoids and other beneficial terpenes globally for no other reason than his or her current residential address.


Unconstitutional


"When residing 25 miles extant of a state legalized dispensary"

Doesn't that sound a bit strange to you?

Restricting access to medicine ...

Almost Un-constitutional, isn't it?

And, with patients in Arizona paying anywhere from $75 to $90 USD for a (1/8) ounce of medicine ...

Don't you think it is time that we allow ALL patients the right to grow, stash, and cure their own medicines?


Make Contact


We do at the MMINAIL.

If you agree, why don't you donate a little spare cash?

Or, a little of your coding time?

Or, simply contact your favorite Arizona State Senators and Congressional Representatives today!


No Warranty


Disclaimer. The author of this website has made every effort to ensure the accuracy of the information herein.

However, the information contained in this website, and in its pages, is offered to the public without any warranty expressed or implied.

Therefore, the author of this website, and by extension its pages and content cannot be held liable for any damages that may be caused indirectly or directly by the software instructions or tutorials contained in the pages of this website.

For further review, please see the License page of this website and/or the Privacy Policy page of this website to clarify.


Reproduction In Part


Most authors will allow the reproduction of their works in part when the case of brief quotations embodied in critical articles or reviews is addressed.

Therefore, please remember to provide a Link-back to the original author, or to the publisher of the original publication when citing.

Thank you for your consideration.


Fork It


If you are an expert in your field of specialty, then I suggest you fork the working repo of this Website and create a Sub-menu topic of your choosing that may be beneficial to our readers.


Send us a Pull Request.


Our team of coders will review your contribution and get back to you with a "thumbs up" ( or, "thumbs down" ).


Can You Contribute Code?


As we can now decipher the time spent by our functions at the code block level ...

How much of your coding time are you willing to invest in this project?

As we rely heavily upon contributions from the coding community, your contribution of code will be greatly appreciated.


Can You Contribute Cash?


As we can now spend the equivalent of our grandparents' monthly mortgage payment at our local Sunday football games ...

How much of your spare cash are you willing to invest in this project?

As we rely heavily upon contributions from the coding community, your contribution of cash will be greatly appreciated.


Can You Contribute Ether?


As we have witnessed the growth of Bitcoin (BTC) from 8 cents to $10,000 USD over the course of the last decade ...

How much of your spare Ether ( ETH ) are you willing to invest in this project?

As we rely heavily upon contributions from the coding community, your contribution of ether will be greatly appreciated.


Public Hash


Scan the following QR Code to extract the Public hash in support of our Medcoin™ Crypto Currency Project.

QR Code - Click to Reveal - the Medcoin Public Hash


Thank you for your contribution.


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