Many firms face product price risk in foreign currency, uncertain costs in home currency and exchange rate risk. If … prices and exchange rates in different countries interact, natural hedges of foreign exchange risk might result. If the … important implications for the design of risk management strategies. -- Corporate risk management ; foreign exchange risk …

access to a number of risk sharingmarkets that have an efficient risk management role. Two of the most strikingresults … achieved from the existence of risk sharing markets are the separationtheorem and the and full-hedging theorem. This note … examines the optimalproduction for exports and hedging decisions of a risk-averse rm facing bothhedgeable exchange rate risk …

In this paper we consider a multinational firm under exchange rate risk in a multiperiod model. We analyze the impact … of exchange rate uncertainty and the use of currency futures on the risk-averse firm's decisions about home and foreign … production. Without any markets for hedging an increase in exchange rate risk lowers foreign investments and output. However …