GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a risk associated with the sale and accompanying transactions between two foreign markets
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a risk in which the exchange rates of either of the two countries will fluctuate
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a risk which results in the decline of a company’s economic value from currency movements, which causes a loss in competitive strength
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a situation that presents the chance of a loss due to probabilities unknown
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ability to speak two or more languages
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Detailed explanation-1: -Whether shipping goods locally or abroad, you face risks such as breakage, loss, theft, vandalism, accident, seizure and contamination. Before you ship any goods, transfer responsibility for shipping to the buyer or seller and take out sufficient insurance.
Detailed explanation-2: -Foreign exchange risk refers to the risk that a business’ financial performance or financial position will be affected by changes in the exchange rates between currencies. The three types of foreign exchange risk include transaction risk, economic risk, and translation risk.
Detailed explanation-3: -Competing in international markets involves important opportunities and daunting threats. The opportunities include access to new customers, lowering costs, and diversification of business risk. The threats include political risk, economic risk, and cultural risk.
Detailed explanation-4: -Commercial risk is a possibility when dealing with a foreign trading partner. There may be a problem with payment, shipping, or the interpretation of your agreement. Mix in different laws, cultures, customs policies, and languages, and things can become complicated.