Exchange systems and exposure

Exchange systems and exposure

Bachelor of Business Studies (BBS) — Fourth Year

Subject: International Business (MGT 251)

Unit 7: International Financial Environment

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of exchange systems and exposure.
• Apply the relevant concepts to a defined organizational or venture situation using evidence and stated assumptions.

Curriculum Scope

• Types of exchange rate systems: fixed and floating, soft peg, crawling peg, free float, managed float
• Foreign exchange risk and exposure

Detailed Microsyllabus

1. Exchange systems

   1. Compare fixed and floating arrangements.
   2. Explain soft pegs, crawling pegs, free floats and managed floats.
   3. Distinguish announced arrangements from observed intervention.

2. Foreign exchange exposure

   1. Explain transaction, translation and economic exposures.
   2. Identify affected cash flows and financial statements.
   3. Assess timing and magnitude of exposure.

3. Risk assessment

   1. Analyze an illustrative currency change.
   2. Compare suitable response options and their limits.
   3. Use official dated evidence for any national exchange arrangement.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 115–117.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.