THE CORRELATION BETWEEN FOREIGN EXCHANGE RATES AND BEARING EXPORT VALUE OF PT. SKF INDONESIA

Abstract

There are several indicators to measure company condition which does international trade, and one of them is by seeing export value and fluctuation of foreign exchange rates. Export value is normally related to the company's performance which does international trade. When the performance of company is good, the company sales will upward of the target issued by the company. However, if the company performance is not good, the company sales will downward of the target. The fluctuation of foreign exchange rates is one important thing that can affect company performance especially the company that is doing international trade. The objective of this research is to find out whether there is a significant correlation between foreign exchange rates and bearing export value of PT. SKF Indonesia within period January 2008 - June 2010. Samples are acquired from reliable sources using internet. To have a perfect research, the writer used quantitative research methodology which was analyzed by using simple linear regression analysis with SPSS as the calculation software. In this research, the writer used secondary data to gather all the necessary result of this analysis. The result explains that there is a medium correlation between foreign exchange rates and bearing export value of PT. SKF Indonesia. From the result of this analysis, the correlation between foreign exchange and bearing export value of PT. SKF Indonesia is (-0.403). From this analysis, PT. SKF Indonesia will know that there is medium correlation between foreign exchange rates and bearing export value at PT. SKF Indonesia. And also it is recommended to pay attention to other factors other than fluctuation of foreign exchange rates so that they can take preventive action to keep bearing export value increasing.