Exchange Rates and Firms
Describes a core module in the International Finance course at Harvard Business School. The module focuses on how firms identify, measure, and manage currency exposures. The cases first introduce students to foreign exchange exposures and the tools used to manage currency risk and then move on to the broader issues involved in formulating appropriate foreign exchange hedging strategies in the context of a large multinational firm. Provides instructors with an overview of the module, the cases, and the teaching notes and how this module fits into the overall International Finance course. Includes a brief description of the framework developed in the course and explains the application of this framework to the cases in this module. Also includes descriptions of the three cases in the module and of the analytic exercise embedded in each case; an explanation of the learning objectives and suggested assignment questions for the cases; and information on additional materials useful in teaching the cases. Concludes with references to relevant academic literature and a bibliography.
Keywords: International Finance;
Currency Exchange Rate;
Desai, Mihir A., and Kathleen Luchs. "Exchange Rates and Firms." Harvard Business School Module Note 206-123, March 2006.