Increasing economic integration and development of global markets means that few companies, if any, are unaffected by currency movements. Change in a company’s earnings due to unexpected changes in foreign currency exchange rates relative to their domestic currency is known as foreign exchange rate risk. Exchange rate changes can also impact the level of competitiveness of firms that are exposed to exchange rate risk, or affect the value of net assets denominated in foreign currencies. Although foreign exchange risk is one of the many business risks faced by modern corporations, it has not been subject of much empirical research. More puzzling is that the fundamental question regarding the impact of foreign exchange rate movements remains unanswered. Therefore, this e-book seeks to fill the gap by providing empirical evidence on the impact of exchange rate changes.