• Explain the three types of exposures in international business—transaction exposure, translation exposure and economic exposure
• Review the four external techniques—forward contracts, currency options, swaps and money market operations—of foreign exchange risk management
• Discuss the important internal hedging techniques to reduce foreign exchange risk exposure, namely, leading and lagging, invoice/billing in the desired currency, indexation clauses, sharing risk, shifting the manufacturing base, netting and reinvoicing centre
