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HRBUS86 Research Project in Financial Management

   

Added on  2020-04-13

9 Pages1785 Words48 Views
Running head: PROJECT MANAGEMENT RESEARCHPROJECT MANAGEMENT RESEARCHName of the StudentName of the UniversityAuthor’s Note

1PROJECT MANGAGEMENT RESEARCHTable of Contents1.1 Introduction..........................................................................................................................31.2 Background..........................................................................................................................31.3 Research problem statement................................................................................................32.0 Rationale for research..........................................................................................................42.1 Statement of research purpose.............................................................................................42.2 Research questions...............................................................................................................42.3 Assumptions.........................................................................................................................43.0 Literature review..................................................................................................................54.0 Research methodology.........................................................................................................65.0 Ethical considerations..........................................................................................................7References..................................................................................................................................8

2PROJECT MANGAGEMENT RESEARCH1.1 IntroductionThe study focuses on the relationship between exchange rate volatility and goldmining sector share prices in South Africa. Commodity exporting nations face long termfluctuations in trade that render their exchange rate volatility. Rising volatility in exchangerate adversely impacts on the economy through its consequences on agent’s consumption aswell as investment decisions. South Africa being one of the largest manufacturers of gold hasexposure to exchange rate volatility. Increase in exchange rate volatility adversely impacts onthe gold mining sector share prices (Wesseh and Niu 2012). The present research proposalalso highlights on how liberalization of capital account changed the relation betweenexchange rate volatility and share price of gold mining sector. Section 2 discuses about therationale for research and statement for research purpose. Section 3 and 4 gives an overviewabout the literature review and research methodology. The last section reflects on the ethicalconsiderations of this research. 1.2 BackgroundExcessive volatility in exchange rate usually influences the nation’s economicdecision making. South African Rand (ZAR) has been usually characterised historically withvolatilities, the current level of currency gyrations especially against the US currency hasbeen unprecedented (Gajigo, Mutambatsere and Mdiaye 2012). The ZAR exchange rate isusually driven by the demand as well as supply. As gold is one of the most vital exportminerals in the nation, it has strong impact on its exchange rate. Depreciation of the currencymight lead to threat to most of the manufacturing industries in this nation.

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