Case | HBS Case Collection | August 1985 (Revised July 1991)

Universal Circuits, Inc.

by Thomas R. Piper


The manager of international finance of a major U.S. electronics company is concerned about the exposure of the firm to changes in exchange rates. Of particular concern is the exposure of operations to changes in real exchange rates. The teaching objectives include: 1) understanding operating exposure and contractual exposure; 2) understanding the issues in estimating operating exposure; 3) understanding possible actions to neutralize operating exposure; and 4) assigning responsibility for the management of operating exposure.

Keywords: Credit Derivatives and Swaps; International Finance; Currency Exchange Rate; Business Plan; Risk and Uncertainty; Financial Management; Financial Strategy; Electronics Industry; United States;


Piper, Thomas R. "Universal Circuits, Inc." Harvard Business School Case 286-006, August 1985. (Revised July 1991.)