Here is the synopsis of our sample research paper on Managing Capital Risk. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 12 page paper considers what strategies and tools can be used to manage capital risks in international businesses. The paper looks at effective use of short and long hedging as well as the potential use of Eurocurrencies. The bibliography cites 6 sources.
Page Count:
12 pages (~225 words per page)
File: TS14_TEcaprisk.rtf
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Unformatted sample text from the term paper:
in many forms, and for a UK company where business is split between Europe, America, Scandinavia and Asia there are many inherent risks, including capital risks. Undertaking business in
other regions sees many macro risks, which cannot be prevented, for example, a company can control the international aspects of international risk, such as culture clash, but there is little
they can do to influence economic and political conditions, all of which may have a direct impact on the business. The only moves theory can make is to plan
and take action to mitigate the risk, reduce the impact and place the company in a opposition where loss is minimised. In the case provided by the student we are
told there are already some measures being taken to protect the company, but as were are not told what these measures are it is difficult to improve on them. As
such, we will consider what actions a company could take to have efficient market protection in the different international markets. It if first worth mentioning that any tools used
or strategies undertaken should be examined in terms of a cost benefit analysis. This means that any tool used must show that it will save more than it will cost,
adding value to the company and be cost efficient. The main risks that are felt ion international markets can be planned for. Political risk is one where insurance may
be an issue, but will be mostly operational planning, such as the alterative plans for operations should the political situation become very difficult, this may also mean restricting the levels
of capital in the country. The main risks that can be managed and are more popularly faced are the risks of the exchange rate fluctuations and interest rate fluctuations which
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