Principle risks incurred by a company operating in a foreign market
DQ 1: What are the principle risks incurred by a company operating in a foreign market and what approaches can a company take to protect it from currency risks 100 WORDS
DQ2: What did Palmisano see as some of the major benefits of globalization? What did he think would be some of the major threats to its continuation and how, in his article did he suggest resolving these issues? 100 WORDS
DQ3: What are the primary functions of the foreign exchange market? Who are the participants in the market? How do global companies use the foreign exchange market to hedge against foreign exchange risks? In what ways have global capital markets reduced the risk and costs to investors 100 WORDS
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There are various principle risks incurred by a country operating in a foreign market which entail risks from fluctuations in foreign currency, stiff competition from domestic companies and legal risks (Morden, 2012). A company can use currency hedging or currency insurance to avert the consequences of currency risk. Currency hedging is a concept that manages the degree of risk in case of currency fluctuation for a company. It is a strategy which is sued to compensate in case of any shift in the relative value of the currency. A company can also take an insurance policy which is aimed at compensating……………………
APA
446 Words
