how might a firm ensure its prices abroad do not rise? (currency exchange rates, etc?)?

Answer 1

Are you talking about selling price in overseas market?

I guess a firm can negate currency fluctuations at a price by engaging in futures. Say a firm in India manufactures samoosas in Bombay, freezes then and exports then to the USA.

If the exporter wants the buyer's price not to change, all the exporter has to to is to charge in $. Therefore, to the importer, the price is unchanged whatever happens to the exchange rate and the price of samoosas in the US does not change.

Now, to ensure that it doesn't take undue currency risks, say in case the $ suddenly loses value with respect to the Indian Rupee, the exporter can lock in the exchange rates by buying futures.