The Management of Foreign Exchange Exposures

Göran Bergendahl and Stefan Sjögren
Additional contact information
Göran Bergendahl: Gothenburg University
Stefan Sjögren: University of Göteborg

Chapter 8 in Bank Stability, Sovereign Debt and Derivatives, 2013, pp 203-234 from Palgrave Macmillan

Abstract: Abstract Since 1986, the international foreign exchange market has grown from US$208 billion in daily turnover (including spot, outright forward and foreign exchange swap transaction) to US$3.9 trillion in 2008 (Bank for International Settlement, 2010). The FDI1 activity of mainly multinational companies (MNC) grew from around US$86.3 billion to around US$1.8 trillion in 2008 (UnctadStat, 2010). During the same period, international trade volumes grew from about US$2.4 million to about US$200 million (UnctadStat, 2010). These numbers demonstrate the globalization that has taken place during the last 25 years, and the increase in international activities by MNCs. This study investigates the foreign exchange exposure management of some Swedish and UK firms. The management of foreign exposure in global firms is considered today as a mature area with well established procedures and a choice of hedging techniques. This study aims at describing the development of these procedures and what factors that lie behind changes taking place. In contrast to other qualitative studies (for example, Aabo, 2006; Bartram, 2001; Brown, 2001; Dhanani, 2004 and Dhanani and Groves, 2001), we have had the opportunity of performing a longitudinal survey with repeated visits on three occasions during this period of extreme growth in the international financial markets, between 1986 and 2008.

Keywords: Foreign Exchange; Foreign Currency; Cash Management; Swedish Firm; Foreign Exchange Risk (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-1-137-33215-8_9

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137332158

DOI: 10.1057/9781137332158_9

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().