Rising trends toward the globalization of goods and services over the last few years means that more and more firms must now make decisions about their foreign exchange exposure. In addition, this need is provoked by the increasingly volatile foreign exchange markets. Exchange rate risk exists when a firm's revenues and expenses are valued in different currencies. Exchange rate risk naturally has an upside as well as a downside, but the experience of most developing …showed first 75 words of 623 total…

…showed last 75 words of 623 total…business in every industry. Works Cited Brealey, R.A., Myers, S.C., Marcus, A.J. Fundamentals of Corporate Finance. McGraw-Hill/Irwin. 2004. New York, N.Y. Matsukawa, Tomoko, Robert Sheppard, and Joseph Wright. "Foreign Exchange Risk Mitigation for Power and Water Projects in Developing Countries." The World Bank.org 9 May 2004 http://www.worldbank.org/energy/pdfs/Energy_ExchangeCvr.pdf "Volkswagen Boosts Currency Hedging." Europe Intelligence Wire. 9 September 2003: Financial Times Information, Ltd. "Union Miniere SA." Mining Journal. 337 (2001): 34