Danubius International Conferences, 14th International Conference on European Integration - Realities and Perspectives
Currency and Price Risk
Last modified: 2019-05-08
Abstract
The aim of the paper is to shows the need for all international economic relations to be accompanied by methods of protection against the various risks which could appear. The paper presents the general concepts of the international economic relationships, which takes place in conditions of risk and uncertainty. Therefore, the foreign trade companies should to protect against commercial risks, especially currency and price risks, by using contractual and non-contractual methods and techniques.
A very effective method of protecting against risks specific to international relations is to inform about the market and about the external partners as accurately as possible. Many foreign trade companies have bigger losses because there are not included contractual clauses to protect against risks, in particular price risk and currency risk.
The information on external partners with which cooperates the foreign trade companies within the international negotiation process shows the precautions measures to be taken each time when a contract with an external partner is signed. This is a first step to solving the problems faced by companies that are involved in the global economic circuit.