Foreign Exchange Risk Mitigation Techniques/Summary

Unit 2.1- Foreign Exchange Risk Mitigation Techniques

Introduction | Rates of Exchange | Market Drivers | Measuring FX Exposure | Business Needs for Foreign Currency | Foreign Exchange Trading | Common Instruments to Offset Risk | Summary | Resources | Activities | Assessment Return to International Finance Module 2: Risk Mitigation Techniques

Summary

The fear of encountering foreign exchange fluctuations and exposing a company to risk is often the deciding factor for a company to stay out of the global market. When international managers understand the risk and the tools available to manage any potential risk, greater opportunities become available for the company. Entering the global market and being willing to deal in foreign currencies may lead to increased business opportunities.

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