13 Abstract More and more Indian firms are becoming global in their operations – through exports and imports, by setting up manufacturing plants abroad and through joint-ventures and tie-ups. In this process most of them are dealing with multiple currencies. This has increased the overall exposure of Indian firms to foreign exchange-rate fluctua- tions. How have they been coping with the risk associated with the exchange-rate fluctuations? In order to explore this, the authors have engaged the case-research method. The authors studied 64 cases for this purpose. Of these 27, firms have been handling forex exposure and/or have had at least one near-crisis situation in the past. The remaining 37 cases are Indian firms from sectors like Textiles, IT, Gems and Jewelry, Pharma, Engineering, FMCG and Energy. The study focused on the context of these firms, their business model, the sources of forex exposure and the policies and practices of managing forex exposure risk. The authors have tried to identify the basic fac- tors underlying the forex exposure and to identify patterns, if any, in the coping-strategy. They conclude that the insights would help formulate a generic strategy. Keywords: Case-Research Method, Forex Risk Management, Coping-Strategy E-mail: bala.bhaskaran@gmail.com Strategies of Indian Firms in Coping with Forex Risk Management: An Inquiry through Case- Research Method P. Bala Bhaskaran 1* and P. K. Priyan 2 1 Shanti Business School, Ahmedabad, India 2 GH Patel Institute of Management Studies, Sardar Patel University, Vallabh Vidya Nagar, India 1. Preamble Any frm transacting business across borders has to deal in foreign currencies and this brings the frm face to face with forex exposure. Towards the last quarter of the 20th century the complexities of forex exposure have increased for a variety of reasons. First, all devel- oped countries and many other countries have opted for foating exchange-rate-regimes leading to dynamic and continuous currency movements. Secondly, most economies opened up during the 1980s and the 1990s leading to increased competition in the market place. Thirdly, technological changes were very rapid in the same period in the form of internet and communication revolutions making the entire globe closely connected and rapidly accessible (Toffer, 1990). The Indian con- text is characterised by the opening of the economy in the post-1991 period, the abandonment of the admin- istered foreign exchange regime to partially foating regime in the 1990s and the transition of the economy from an investment-driven stage to innovation-driven stage of economic development (Porter, 1980). In this process more Indian frms have become global, more frms have got their shares listed in the New York stock Exchange 1 , more frms started fnding places in Fortune 500 2 and Forbes 2000 3 lists. Multi-national companies are the pioneers in developing techniques of coping with currency fuctuations. How are the Indian compa-