Discussion Post: International Finance
You are required to provide a critical analysis of the following question in 1000 words. Use evidence and recent research results to support your answer. You should refer to the wider literature and real-life examples.
Should companies hedge their exposures to foreign exchange risk? Discuss both views critically and state your recommendation. Use relevant research results to support your answer.
In this discussion, the following learning outcomes will be covered:
• Demonstrate comprehensive knowledge of exchange rate systems and the interaction between exchange rates, interest rates and inflation.
• Appreciate the types of risks faced by investors and multinational companies.
• Apply and critically evaluate alternative techniques for managing foreign exchange risks.
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.