Alternative Strategies for Managing Foreign Exchange Risk

Managerial Finance - 1978
GunterDufey, David P.Walker

Tóm tắt

This essay analyses alternative strategies for a firm to deal with exchange risk. “Profit maximising” and “risk minimising” strategies are examined as extreme alternatives. The former requires successful exchange rate forecasting, the latter is based on avoiding any impact of unexpected exchange rate changes on the firm. This strategy is illustrated using three “typical” firms as examples: the occasional exporter, the permanent exporter/or importer, and a firm with multi‐national operations. In each case, operational aspects are carefully identified and conclusions are drawn as to the necessary structuring of the firms' liabilities.

Từ khóa


Tài liệu tham khảo

Dufey G., 1978, California Management Review

Shulman R. B., 1970, Columbia Journal of World Business

For, exchange risk

Dufey G., 1975, Graduate School of Business Administration

For, D. P., An Economic Analysis of Foreign Exchange Risk

Thông tin
Thông tin xuất bản

Managerial Finance

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