MANAGEMENT OF FINANCIAL RISKS IN INTERNATIONAL TRADE FINANCING
Journal Title: EMC Review: Časopis za ekonomiju i tržišne komunikacije - Year 2016, Vol 6, Issue 1
Abstract
Sale of products with delayed payment, i.e. credit supported sale is a major force ininternational trade and an imperative in today’s business world. In the contemporary internationalcommerce market positions and negotiation power have changed mainly in favor ofbuyers, who on the other hand, regularly request credit – based purchasing. Faced with competitionon the global market, sellers intending to sell their goods and services on the marketare enforced to off er favorable conditions, which is in fact sale with delayed payment. Presenceon the global market off ers possibilities for profi t-making, but at the same time export-orientedbusinesses are surrounded by potential risks. Th e major problem in fact is the re-paymentof the receivables, which is a result of the time interval from the moment when the foreignbuyer will receive the delivered goods to the moment when he will pay the agreed amount.Risk management and exposure management or hedging exposure, are applied frequently byfi nancial managers, managing the funds of a company, in order to enable exposure cover andreduce the potential instability for the company. The exposure management in case of foreigncurrency or exchange exposure represents an integral part of the fi nancial function of the company,which acts globally, primarily multinational companies.International trade transactionsare administered in far more complex conditions than those on the local/national market.Therefore, the stress should be on the crucial importance of the economic and financial riskmanagement in the domain of international trade finance.
Authors and Affiliations
Nada Petrusheva
SKILLS, KNOWLEDGE MANAGEMENT AND CHANGE MANAGEMENT AS A SUCCESS FACTORS AND DEVELOPMENT
Traditional old world of business no longer exists. Long since the rules are there are no rules. Only connection technology with the human factor meets the current market and the world of business. At the same time, tech...
MACROECONOMIC INDICATORS, TRADE AND COMPETITIVENESS COUNTRIES IN THE DANUBE REGION
This paper observes macroeconomic performance of the Danube region countries, with a special focus on Serbia, as well as the increase of GDP, inflation, unemployment, public debt share, external debt, foreign direct inve...
RAZVOJNA POLITIKA I OCENA INVESTICIONIH PROJEKATA U MSP SRBIJE - DEVELOPMENT POLICY AND EVALUATION OF INVESTMENT PROJECTS OF SMALL AND MEDIUM ENTERPRISES IN SERBIA
Ensuring a favorable investment environment represents a very complex aspect of the development economic policy which entails a solid legislative framework, efficient and fairjustice system, minimal administrative obstac...
THE IMPACT OF THE NON-PERFORMING LOANS TO BANKS’PERFORMANCE: THE CASE OF THE REPUBLIC OF MACEDONIA
The paper investigates the relationship between non-performing loans and the basic indicators for banks’performance. The analysis was conducted among the banking sector in the Republic of Macedonia for the period 2007-20...
LANGUAGE COMPETENCIES, ACHIEVEMENTS AND QUALIFICATIONS IN THE COMMON EUROPEAN FRAMEWORK OF REFERENCE FOR LANGUAGES
This paper focuses on the Europe-wide coordination of language learning, teaching and assessment. The Common European Framework of Reference for Languages was developed by international experts as one of the most influe...