Chapter 5
Management of Foreign Exchange Exposure and Risk
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
Discuss the concepts of foreign exchange exposure and foreign exchange risk, and understand how they are measured.
Define real exchange rate and nominal exchange rate.
Classify foreign exchange exposure into economic and translation exposure, and understand how economic exposure can be further categorized into various types of transaction and operating exposures.
Discuss the management of transaction exposure and highlight various hedging techniques.
Describe the management of operating exposure.
Gain an overview of different currency translation methods.
5.1 Introduction
Foreign exchange rates never remain ...
Get International Financial Management now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
