100%(4)4 out of 4 people found this document helpful
This preview shows page 1 - 3 out of 3 pages.
International Risk International Risk PaperFIN/320When an organization deals with other countries for business opportunities, it has to be aware of the risks involved. Three risks involved for organizations that invest in foreign countries include the population’s opinion or bias against its country, the currency exchange rate,and the politics of the foreign country. Even though, international finances can be profitable and exciting at times, a company is still required to expect and guard against the risks it needs to take. The first risk a company must understand is the currency exchange rate. When one currency is exchanged for another, it is known as a currency exchange. A currency exchange occurs when a company decides to invest in another country. Since the currency exchange rate changes daily this could prove to be either harmful or beneficial for the
International Risk company. To prevent loss when retrieving profit from a business or adding additional funds to a project, it becomes essential to guard against the fluctuation.