Explore BrainMass

Explore BrainMass

    Current risks facing organizations engaged in international finance activities

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I want to include examples of tools that organizations can use to manage risk but just don't know how to get started.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:27 pm ad1c9bdddf

    Solution Preview

    Economic risks
    · Risk of insolvency of the buyer,
    · Risk of protracted default - the failure of the buyer to pay the amount due within six months after the due date, and
    · Risk of non-acceptance
    · Surrendering economic sovereignty
    Political risks
    · Risk of cancellation or non-renewal of export or import licences
    · War risks
    · Risk of expropriation or confiscation of the importer's company
    · Risk of the imposition of an import ban after the shipment of the goods
    · Transfer risk - imposition of exchange controls by the importer's country or foreign currency shortages
    · Surrendering political sovereignty

    Organizations engaged in international finance activities are tormented by a market based exchange rate will change whenever the value of either of the two component currencies ...