This volume is part of a three-volume set designed for use in a course in applied international corporate ﬁnance for managers and executives. Instead of the “encyclopedic” approach, the volumes focus on main issues of interest to managers who deal with overseas operations. This volume’s issue is how uncertain foreign exchange (FX) rate changes affect a ﬁrm’s ongoing cash ﬂows and equity value, and what can be done about this risk. Numerous examples of real-world companies are used. The volume contains a hypothetical case that aims to tie the material together. The case company has overseas operations and is faced with ongoing FX exposure in corporate revenues. The decision maker estimates the FX exposure and considers ﬁnancial hedging using foreign currency debt and currency swaps. The accounting implications are also considered. The volume reviews some basics of FX rates; for more information, see the first volume: Introduction to Foreign Exchange Rates, 2nd edition, Business Expert Press, 2016. The third volume deals with the estimation of the cost of capital for international operations and the evaluation of overseas investment proposals: Applied International Finance: International Capital Budgeting, 2nd edition, Business Expert Press, 2017.