Firms venturing into international markets face a liability of foreignness. To overcome it, internationalizing firms require a clear strategy and professional risk management. The country-related risks they face include, but are not limited to, credit risk, political risk and socio-cultural risks. Most importantly, firms internationalizing into foreign markets face exchange rate risks, and many underestimate them. In a study conducted by Giambona et al. (2018), 48% of non-financial firms rate foreign exchange risk as the most important or a material risk in international business.

The course covers the risks firms face in internationalization, with particular focus on the financial and strategic management of exchange rate risks. It is designed to teach students (a) the theoretical frameworks necessary to understand exchange rates' effects on firms, (b) the internal, contractual, external and strategic hedging instruments available to them, and (c) how to systematically reflect on the challenges of operating in multiple currency areas. In addition to these traditional treasury strategies, the course includes an extensive discussion of organizational issues in corporate risk management and long-term strategic remedies for reducing the risks of internationalization.

• Online learning assignments: 30 %
• Case Studys: 20 %
• Final exam (individual): 50 %     

 Your grade will be based on your final score, as follows:

• 90-100% → Excellent (1)
• 80-89% → Good (2)
• 70-79% → Satisfactory (3)
• 60-69% → Sufficient (4)
• 0-59% → Fail (5)