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The volatility in foreign exchange risk is influenced by change in economic performance of various economies in terms of their GDP, inflation rate, fiscal deficit, employment rate, position in world trade etc. The business firms having international operations are directly affected by change in currency exchange rate. The currency risk or Forex risk is understood as possible loss to payment of international transactions due to unfavorable exchange rates. Ideally, companies of all sizes (small, medium and big) are equally affected by Forex rate fluctuations. But there is diversity in this…mehr

Produktbeschreibung
The volatility in foreign exchange risk is influenced by change in economic performance of various economies in terms of their GDP, inflation rate, fiscal deficit, employment rate, position in world trade etc. The business firms having international operations are directly affected by change in currency exchange rate. The currency risk or Forex risk is understood as possible loss to payment of international transactions due to unfavorable exchange rates. Ideally, companies of all sizes (small, medium and big) are equally affected by Forex rate fluctuations. But there is diversity in this opinion too. Likewise, Yeo and Lai (2004) stated in their research that SMEs having international exposure are more exposed to foreign exchange risk in comparison to large sized firms. While Doidge, Griffin, & Williamson argued that the Forex risk exposure of SMEs is less in comparison to large firms. The Forex risk exposure may vary from country to country and also vary for specific types of firms, i.e., small, medium and large.
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