1927 SME - Course 3: Internationalization & FOREX Management
Assoz.Prof. PD Dr. Jakob Müllner
Contact details
Weekly hours
Language of instruction
09/14/20 to 09/30/20
Registration via LPIS
Notes to the course
Day Date Time Room
Thursday 12/03/20 02:00 PM - 06:00 PM Online-Einheit
Thursday 12/10/20 02:00 PM - 06:00 PM Online-Einheit
Thursday 12/17/20 02:00 PM - 06:00 PM Online-Einheit
Thursday 01/07/21 02:00 PM - 06:00 PM Online-Einheit
Thursday 01/14/21 02:00 PM - 06:00 PM Online-Einheit
Thursday 01/21/21 02:00 PM - 06:00 PM Online-Einheit
Thursday 01/28/21 09:00 AM - 11:00 AM Online-Einheit
Procedure for the course when limited activity on campus

The course is a distance learning course and requires no physical presence or plan B.


Just like large multinational corporations, SMEs venturing in international markets face liability of foreignness. Unlike MNEs, however, SMEs are less diversified, dispose of fewer resources and commonly have less knowledge about foreign markets. Hence, the liability of foreignness is exacerbated by, what could be referred to as “liability of smallness”.

To overcome these liabilities, internationalizing SMEs require a clear strategy and professional risk management. These country-related risks include, but are not limited to credit risk, political risk and socio-cultural risks. Most importantly, SMEs internationalizing into foreign markets face exchange rate risks. Despite disproportional exposure to exchange rate risks, “Many SMEs fail to grasp foreign exchange risk. (Bolshaw, 2013)”. 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 SMEs’ risks in internationalization with particular focus on the financial and strategic management of exchange rate risks. This course is designed to teach students (a) the theoretical frameworks necessary to understand exchange rates' effects on firms (b) familiarize them with internal, contractual, external and strategic hedging instruments and (c) systematically reflect on the challenges of SMEs operating in multiple currency areas.In addition to these traditional treasury strategies, the course includes an extensive discussion of organizational issues in SME risk management and long-term strategic remedies for reducing the risks of internationalization.

Learning outcomes

After concluding the course students

  • have a fundamental understanding of exchange rate determination and forecasting on a macro-economic level
  • are familiar with exchange rate quotation customs
  • have a detailed understanding of different exchange rate exposure concepts (book exposure, transaction exposure and economic exposure)
  • can analyze the corporate hedging process in SMEs from a theoretical perspective
  • can implement simple internal and contractual strategies to mitigate foreign exchange risks in SMEs
  • can calculate and implemet more complex external hedging strategies (forwards, futures, options)
Attendance requirements

The course is an asynchronous distance course. No attendance required but students must conclude all online distance learning steps.

Teaching/learning method(s)

The course combines several learning components:

o Classic lecture.

o Online learning assignments after each class.

o Final exam

o Group assignment (Wiki Project)

  • · Online learning assignments                                      45 %                weekly

    · Wiki Project (group):                                                  10 %              

  • · Final exam (individual):                                             45 %               

Prerequisites for participation and waiting lists

Registration follows LPIS system and the "Wartelisten" System.

Recommended previous knowledge and skills

Preliminary understanding of financial markets is beneficial.

Availability of lecturer(s)

Open office hours:

Tuesday 10:00 - 11:00 (D1 5th floor) - please register via e-mail

Telephone: Tel: +43-1-31336-4374


Last edited: 2020-06-29