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Date:                        [2019-06-04, 2019-06-11]

Level:                       Bachelor thesis in Business Administration, 15 cr

Institution:              School of Business, Society and Engineering, Mälardalen University

Authors:                  Ferial Ghamari, Diana Goro and Magdalena Said

             (97/08/22)              (97/03/31)      (96/12/06)

Title:                        Currency risk management: How Swedish small companies are affected by Swedens exclusi Sweden’s exclusion in EMU

Tutor:                      Ulla Pettersson

Keywords:               Risk management, Euro in Sweden, Exchange rate risk, multinational                                  finance, hedging, currency risk.

Questions:               How does Swedish small and micro companies handle the currency risk in international transactions? If the introduction of the euro were to take place in Sweden, how would this affect exchange rate differences for small and micro companies

Purpose:                  The purpose of this paper is to analyze how Swedish small and micro companies handle currency risks, in order to get a clearer picture of how companies are affected when they trade in the international market. Furthermore, the study will investigate the significance of the introduction of the euro in Sweden for the Swedish small and the micro companies.

Method:                  Through a qualitative study, we have interviewed companies that trades with the international market and we have limited ourselves within the small companies that exist.

Conclusion:             The conclusion of the essay is that currency risks can be managed with the help of various derivative instruments, depending on which company is conducted. Most of the interviewers consider that the introduction of the euro might have facilitated international trade. On the other hand, there is no evidence that it has facilitated the companies.