Exchange Rates and Firms
Posted: 16 Aug 2006
Date Written: 2006
This module note describes the second module of 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 risks, and then to the broader issues involved in formulating appropriate foreign exchange hedging strategies in the context of a large multinational firms. The module note 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. There is a brief description of the framework developed in the course and the note explains the application of this framework to the cases in this module. The module note 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. The module note concludes with references to the relevant academic literature and a bibliography.
Suggested Citation: Suggested Citation