5647 SME - Course 3: Internationalization & FOREX Management
Assoz.Prof. PD Dr. Jakob Müllner
Contact details
Weekly hours
Language of instruction
02/07/22 to 02/13/22
Registration via LPIS
Notes to the course
Day Date Time Room
Thursday 03/10/22 08:00 AM - 11:00 AM D2.0.392
Friday 03/11/22 09:00 AM - 12:00 PM Online-Einheit
Thursday 03/24/22 08:45 AM - 10:45 AM D2.0.030
Thursday 03/24/22 09:00 AM - 12:00 PM Online-Einheit
Thursday 03/31/22 09:00 AM - 12:00 PM Online-Einheit
Thursday 04/07/22 08:00 AM - 11:00 AM D2.0.030
Tuesday 04/12/22 09:00 AM - 12:00 PM Online-Einheit
Thursday 04/21/22 09:00 AM - 12:00 PM TC.3.09
Thursday 04/28/22 09:00 AM - 12:00 PM TC.3.09

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

During the course, students

  • acquire 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 implement more complex external hedging strategies (forwards, futures, options)
Attendance requirements

Students must attend ALL mandatory sessions & online components.

Teaching/learning method(s)

 The course combines several learning components:
             o Online video lectures
             o Online learning assignments after each class.
             o Bloomberg Course
             o Online final exam 
             o Group assignment 


· Online learning assignments                                                 30 %                 

· Bloomberg (Currencies, Commodities, Equity options)         20 %                

· Final exam (individual):                                                          50 %     

Prerequisites for participation and waiting lists

Registration follows LPIS system and the "Waiting List" 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 3rd floor) - please register via e-mail

Tel: +43-1-31336-4374



24. March 2022, 9:00 - 11:00     Tutor Session on Campus   

You will receive more information shortly before the session via e-mail. 


Unit details
Unit Date Contents
1 10. March 2022

Admin and Introduction
Presence Module

2 11. March 2022

Lecture casts: Types of Foreign Exchange Exposures

  • FX Markets
  • Exchange Rate Theories
  • Exchange Rate Quotations
  • Translation Risk
  • Economic Risk
  • Transaction Risk
3 24. March 2022

Lecture casts: Organization & Risk Management

  • Agency Theory and Risk Management
  • Organizing Hedging in SMEs
  • Hedging & Speculation
  • The Hedging Process
  • Exchange Rate Forecasting
  • Internal hedging strategies
  • Contractual hedging strategies
  • External hedging strategies
  • Money Market Hedge
  • Forwards & Futures
  • Currency Options
4 31. March 2022

Lecture casts: FX Hedging I Hedging calculations

  • Money Market Hedge
  • Forward Rate Agreement
  • Simple Options Hedge 
  • Synthetic Forward Rate Agreement
5 7. April 2022

Presence Module

6 12. April 2022

Bloomberg Course 

  • Economic Indicators
  • Currencies
  • Fixed Income Equities
7 21. April 2022

Recap Session
Presence Module

  • Group Assignments
  • Calculations
8 28. April 2022

Final Exam
More Information: TBA

Last edited: 2022-02-26