Analysis of economic exchange exposure on the example of a Czech exporting company

In the first, theoretical part, thesis covers contemporary literature and theoretical basis. It distinguishes between three types of exchange exposures and summarizes current approaches to exchange rate hedging methods (external and internal hedging methods).Attention is also paid to the introduction of the euro currency in the Czech Republic and the subsequent impact on the economic exchange exposure of Czech companies. As the analyzed company invoices for its goods and services in several currencies, the thesis also analyzes the development of selected currency pairs and their correlations.The practical part of the thesis covers the issue of economic exchange exposure on the example of a Czech export company. The third chapter contains a description of the company's activities, geographical distribution of clients and geographical distribution of sales. The basis for the subsequent suggestion of hedging strategies and methods is the analysis of the monetary structure of expenditures and revenues. Based on the prediction of the future development of exchange rates and the analysis of the company's current economic exchange exposure, the outcome of the last part of the thesis is the design of a hedging strategy applicable in practice. As the work focuses on the issues of economic exchange exposure, the strategy consists of internal hedging methods. The proposed strategies differ in both the difficulty of implementation and the time necessary for implementation. All measures lead to a reduction of exchange economic exposure, assuming the future appreciation trend of the Czech crown. The diploma thesis outputs are applicable in practice. The work provided the basis for further possible cooperation with the export company and detailed development of the proposed strategy.