Bishev, Gligor and Boskov, Tatjana (2015) Principles of managing currency risk by companies. In: Liderstvo i menadžment – država, preduzeće, preduzetnik - LIMEN, 10-11 Dec 2015, Belgrade, Serbia.
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Abstract
Most investors are familiar with the concept of currency exposure, with constantly
changing exchange rates affecting the cost of investing in international securities. These same
issues also affect companies that operate internationally. So what effect do currency
fluctuations have on company profits, and what are they doing to insulate themselves? In this
paper we examine this question. Firms can choose to manage their currency exposure
through various business practices. Truly international company, theoretically, losses when
one currency falls and recovers lost when another rises. Where contracts are concerned
business can also set up clauses that reduce this exposure. In many cases this comes in the
form of an agreement which protects the client and the company. Some businesses also agree
on setting all contracts in their core currency, protecting them from any exposure as they
always paying the same relative amount.
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Subjects: | Social Sciences > Economics and business |
| Divisions: | Faculty of Tourism and Business Logistics |
| Depositing User: | Tatjana Boskov |
| Date Deposited: | 26 Jan 2016 15:05 |
| Last Modified: | 26 Jan 2016 15:05 |
| URI: | https://eprints.ugd.edu.mk/id/eprint/15048 |
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