GASTÓN FORNÉS received a PhD in Management from the University of Bath, UK, an MBA from Universidad Adolfo Ibañez, Chile, and his first degree in Management from Universidad Nacional de Cuyo, Argentina. He was also a MBA Exchange Student at Marshall School of Business, University of Southern California, USA. Before starting his doctoral studies, Dr Fornés worked in industry for around ten years in the USA, Argentina, and Chile. His main research interest is management in emerging markets, especially foreign exchange exposure in these markets, and the internationalization of their companies to other emerging countries. He is currently undertaking research on the internationalization of Chinese companies to Latin America.

'The increasing turbulence in international markets makes this volume extremely timely, addressing as it does international finance, corporate strategy and political risk. The analysis is both rigorous and lucid. For anyone interested in understanding how firms manage financial risk in emerging markets, Fornes's work is invaluable.' - Dr Steve McGuire, Senior Lecturer in International Business, School of Management, University of Bath, UK 'Emerging markets are now one of the main sources of opportunities for multinational companies, and the management of the foreign exchange exposure in these countries a key skill. Emerging markets are infamous for their currency crisis where unhedged exposures can compromise the performance of subsidiaries. This book appears in the right moment as emerging markets are gaining importance in the world economy.' - Segundo Huarte, Member of the Board and former Country Manager, BBVA Portugal 'For companies like ours which are still in the process of globalization by increasing the level of business in many emerging countries, the subject of the exchange rate risk is of high significance and must be monitored on a continuous basis. The traditional approach to hedging sometimes doesn't fit with the specific requirements of each deal, especially when more than three currencies are present in the operations. Therefore, the need for a more holistic approach to building a general strategy for the management of the exchange rate risk is absolutely necessary. In this sense, this book has shown to be a fundamental input in our general strategy for managing the exchange risk in the region.' - Ivan Gjurovic, President for South America, Groundprobe 'Nowadays more and more companies do business abroad to expand their market and increase their profits, especially in emerging markets such as China and India. However, opportunities are always accompanied by risks; the complexity and diversity of these risks sometimes result in the failure of operations in a foreign country. Fornes's book offers a systemic and well-grounded analysis of these risks and also explains how to manage them. It is useful and timely. Undoubtedly, this book is an important contribution to the literature on this topic.' - Xu Ning, Lecturer, Director of Office of School of Economics, Nanjing University, China

• Acknowledgements Abstract Introduction The Global Economy and the Emerging Markets Review of the Literature Conceptual Framework and Objectives How the Analysis Was Carried Out The Analysis of the Data The Development of a Tool to Minimize Foreign Exchange Exposure in Emerging Markets An Example of the Use of The Tool Appendices Index References

GASTÓN FORNÉS received a PhD in Management from the University of Bath, UK, an MBA from Universidad Adolfo Ibañez, Chile, and his first degree in Management from Universidad Nacional de Cuyo, Argentina. He was also a MBA Exchange Student at Marshall School of Business, University of Southern California, USA. Before starting his doctoral studies, Dr Fornés worked in industry for around ten years in the USA, Argentina, and Chile. His main research interest is management in emerging markets, especially foreign exchange exposure in these markets, and the internationalization of their companies to other emerging countries. He is currently undertaking research on the internationalization of Chinese companies to Latin America.

'The increasing turbulence in international markets makes this volume extremely timely, addressing as it does international finance, corporate strategy and political risk. The analysis is both rigorous and lucid. For anyone interested in understanding how firms manage financial risk in emerging markets, Fornes's work is invaluable.' - Dr Steve McGuire, Senior Lecturer in International Business, School of Management, University of Bath, UK 'Emerging markets are now one of the main sources of opportunities for multinational companies, and the management of the foreign exchange exposure in these countries a key skill. Emerging markets are infamous for their currency crisis where unhedged exposures can compromise the performance of subsidiaries. This book appears in the right moment as emerging markets are gaining importance in the world economy.' - Segundo Huarte, Member of the Board and former Country Manager, BBVA Portugal 'For companies like ours which are still in the process of globalization by increasing the level of business in many emerging countries, the subject of the exchange rate risk is of high significance and must be monitored on a continuous basis. The traditional approach to hedging sometimes doesn't fit with the specific requirements of each deal, especially when more than three currencies are present in the operations. Therefore, the need for a more holistic approach to building a general strategy for the management of the exchange rate risk is absolutely necessary. In this sense, this book has shown to be a fundamental input in our general strategy for managing the exchange risk in the region.' - Ivan Gjurovic, President for South America, Groundprobe 'Nowadays more and more companies do business abroad to expand their market and increase their profits, especially in emerging markets such as China and India. However, opportunities are always accompanied by risks; the complexity and diversity of these risks sometimes result in the failure of operations in a foreign country. Fornes's book offers a systemic and well-grounded analysis of these risks and also explains how to manage them. It is useful and timely. Undoubtedly, this book is an important contribution to the literature on this topic.' - Xu Ning, Lecturer, Director of Office of School of Economics, Nanjing University, China

• Acknowledgements Abstract Introduction The Global Economy and the Emerging Markets Review of the Literature Conceptual Framework and Objectives How the Analysis Was Carried Out The Analysis of the Data The Development of a Tool to Minimize Foreign Exchange Exposure in Emerging Markets An Example of the Use of The Tool Appendices Index References

GASTÓN FORNÉS received a PhD in Management from the University of Bath, UK, an MBA from Universidad Adolfo Ibañez, Chile, and his first degree in Management from Universidad Nacional de Cuyo, Argentina. He was also a MBA Exchange Student at Marshall School of Business, University of Southern California, USA. Before starting his doctoral studies, Dr Fornés worked in industry for around ten years in the USA, Argentina, and Chile. His main research interest is management in emerging markets, especially foreign exchange exposure in these markets, and the internationalization of their companies to other emerging countries. He is currently undertaking research on the internationalization of Chinese companies to Latin America.

'The increasing turbulence in international markets makes this volume extremely timely, addressing as it does international finance, corporate strategy and political risk. The analysis is both rigorous and lucid. For anyone interested in understanding how firms manage financial risk in emerging markets, Fornes's work is invaluable.' - Dr Steve McGuire, Senior Lecturer in International Business, School of Management, University of Bath, UK 'Emerging markets are now one of the main sources of opportunities for multinational companies, and the management of the foreign exchange exposure in these countries a key skill. Emerging markets are infamous for their currency crisis where unhedged exposures can compromise the performance of subsidiaries. This book appears in the right moment as emerging markets are gaining importance in the world economy.' - Segundo Huarte, Member of the Board and former Country Manager, BBVA Portugal 'For companies like ours which are still in the process of globalization by increasing the level of business in many emerging countries, the subject of the exchange rate risk is of high significance and must be monitored on a continuous basis. The traditional approach to hedging sometimes doesn't fit with the specific requirements of each deal, especially when more than three currencies are present in the operations. Therefore, the need for a more holistic approach to building a general strategy for the management of the exchange rate risk is absolutely necessary. In this sense, this book has shown to be a fundamental input in our general strategy for managing the exchange risk in the region.' - Ivan Gjurovic, President for South America, Groundprobe 'Nowadays more and more companies do business abroad to expand their market and increase their profits, especially in emerging markets such as China and India. However, opportunities are always accompanied by risks; the complexity and diversity of these risks sometimes result in the failure of operations in a foreign country. Fornes's book offers a systemic and well-grounded analysis of these risks and also explains how to manage them. It is useful and timely. Undoubtedly, this book is an important contribution to the literature on this topic.' - Xu Ning, Lecturer, Director of Office of School of Economics, Nanjing University, China

• Acknowledgements Abstract Introduction The Global Economy and the Emerging Markets Review of the Literature Conceptual Framework and Objectives How the Analysis Was Carried Out The Analysis of the Data The Development of a Tool to Minimize Foreign Exchange Exposure in Emerging Markets An Example of the Use of The Tool Appendices Index References