ways to mitigate risks associated with business opportunities developed because of globalization?

Question

a realistic brief overview of recommendations

Answer 1

Futures markets.

Opportunities from globalization sounds like you are buying or selling from around the world.

If you have a contract - first make the contracts long term with fixed prices you know you can do at a profit. Then if you are using foreign currencies, you can lock in the value by trading on currency futures markets. You then know the price you will exchange at and take away the risk of fluctuating prices.

This isn't limited to foreign currency. you can purchase raw resources you need that way too. Such as futures markets of steel, coal, oil, etc.

Insurance - That is considered a basic risk mitigation for business. But even more so if you are globalizing. If you have a foreign factory in a flood zone, hurricane zone, or threat of war, you need to try get this covered by your insurance.

Answer 2

There are two major groups of risk in international business, currency risks and poilitical risks. Currency risks are hedgeable in the short run, but not for all currencies. Political risks are unhedgeable, so they must be dealt with through geographic diversification.

Answer 3

that is so hard to say in google answer,but i think this question is more political than economic,thus nobody can give you the true answer, i advise you study and think carefully on your own more than listening to the others

Answer 4

outsourceing