Archive:Introduction to Political and Economic Risk/Economic Risks - Revision history

wikademia>Wikademia: moved Introduction to Political and Economic Risk/Economic Risks to Archive:Introduction to Political and Economic Risk/Economic Risks

2009-05-27T05:56:55Z

moved Introduction to Political and Economic Risk/Economic Risks to Archive:Introduction to Political and Economic Risk/Economic Risks

← Older revision	Revision as of 05:56, 27 May 2009
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wikademia>Wikademia: moved Economic risks to Introduction to Political and Economic Risk/Economic Risks

2009-05-23T18:44:22Z

moved Economic risks to Introduction to Political and Economic Risk/Economic Risks

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wikademia>Wikademia at 16:44, 6 May 2009

2009-05-06T16:44:19Z

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	~~==Economic Risk==~~
	Economic risks can endanger the ability of a seller to get payment for goods or services in many ways. This type of risk can sometimes be forecast but is often completely out of the control of either the buyer or seller. Purchasing transaction insurance is essential for a buyer to minimize economic risk. Elements of economic risk include but are not limited to:		Economic risks can endanger the ability of a seller to get payment for goods or services in many ways. This type of risk can sometimes be forecast but is often completely out of the control of either the buyer or seller. Purchasing transaction insurance is essential for a buyer to minimize economic risk. Elements of economic risk include but are not limited to:

	*convertibility risk		* convertibility risk
	*foreign exchange risk		* foreign exchange risk
	*translation risk		* translation risk
	*central bank activities (interest rate fluctuation, availability of funds)		* central bank activities (interest rate fluctuation, availability of funds)
	*economic indicator movement (GDP, unemployment, purchasing power, inflation, etc.)		* economic indicator movement (GDP, unemployment, purchasing power, inflation, etc.)


	===Convertibility Risk===		===Convertibility Risk===

wikademia>Wikademia: Text replace - 'TF1.1' to 'ntnes'

2009-04-10T18:51:25Z

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wikademia>Wikademia: Text replace - 'Category:International Business' to 'Category:International business'

2009-04-09T05:08:14Z

Text replace - 'Category:International Business' to 'Category:International business'

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	<div style="float:right;">[[Introduction to Political and Economic Risk/Country-Related Risks\|Prev]] \| [[Introduction to Political and Economic Risk/Cultural Risks\|Next]]		<div style="float:right;">[[Introduction to Political and Economic Risk/Country-Related Risks\|Prev]] \| [[Introduction to Political and Economic Risk/Cultural Risks\|Next]]

	[[Category:International ~~Business~~]]		[[Category:International business]]

wikademia>Wikademia: moved Introduction to Political and Economic Risk/Economic Risks to Economic risks

2009-04-06T07:06:30Z

moved Introduction to Political and Economic Risk/Economic Risks to Economic risks

← Older revision	Revision as of 07:06, 6 April 2009
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wikademia>Wikademia: 4 revisions

2009-04-06T07:06:10Z

4 revisions

← Older revision	Revision as of 07:06, 6 April 2009
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217.24.240.7: /* Convertibility Risk */

2008-11-24T21:34:15Z

Convertibility Risk

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	===Convertibility Risk===		===Convertibility Risk===
	Convertibility risk is an issue when a buyer has received the goods promised and is now ready to make payment but can’t because, for any number of possible reasons, the buyer’s government bars the conversion of its local currency to that of any other country. The reasons for this action could be a possible war, a major building infrastructure program, or a massive negative trade balance. The buyer naturally has the currency of his own country in his bank account. When the buyer goes to the bank to exchange the local currency to the currency specified in the purchase contract or to the currency of the seller’s country – or for that matter the currency of any “hard currency” country, the conversion cannot be made without proper authorization. Convertibility risks usually occur when the buyer’s currency does not have a ready world market. Although the transfer of the local currency out of the buyer’s country may not have been specifically barred, it provides little value since the seller may not be able to find a buyer for the funds.		Convertibility risk is an issue when a buyer has received the goods promised and is now ready to make payment but can’t because, for any number of possible reasons, the buyer’s government bars the conversion of its local currency to that of any other country. The reasons for this action could be a possible war, a major building infrastructure program, or a massive negative trade balance. The buyer naturally has the currency of his own country in his bank account. When the buyer goes to the bank to exchange the local currency to the currency specified in the purchase contract or to the currency of the seller’s country – or for that matter the currency of any “hard currency” country, the conversion cannot be made without proper authorization. Convertibility risks usually occur when the buyer’s currency does not have a ready world market. Although the transfer of the local currency out of the buyer’s country may not have been specifically barred, it provides little value since the seller may not be able to find a buyer for the funds.
	~~,m,m/,.~~

	===Foreign Exchange Risk===		===Foreign Exchange Risk===

217.24.240.7: /* Convertibility Risk */

2008-11-24T21:27:04Z

Convertibility Risk

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	===Convertibility Risk===		===Convertibility Risk===
	Convertibility risk is an issue when a buyer has received the goods promised and is now ready to make payment but can’t because, for any number of possible reasons, the buyer’s government bars the conversion of its local currency to that of any other country. The reasons for this action could be a possible war, a major building infrastructure program, or a massive negative trade balance. The buyer naturally has the currency of his own country in his bank account. When the buyer goes to the bank to exchange the local currency to the currency specified in the purchase contract or to the currency of the seller’s country – or for that matter the currency of any “hard currency” country, the conversion cannot be made without proper authorization. Convertibility risks usually occur when the buyer’s currency does not have a ready world market. Although the transfer of the local currency out of the buyer’s country may not have been specifically barred, it provides little value since the seller may not be able to find a buyer for the funds.		Convertibility risk is an issue when a buyer has received the goods promised and is now ready to make payment but can’t because, for any number of possible reasons, the buyer’s government bars the conversion of its local currency to that of any other country. The reasons for this action could be a possible war, a major building infrastructure program, or a massive negative trade balance. The buyer naturally has the currency of his own country in his bank account. When the buyer goes to the bank to exchange the local currency to the currency specified in the purchase contract or to the currency of the seller’s country – or for that matter the currency of any “hard currency” country, the conversion cannot be made without proper authorization. Convertibility risks usually occur when the buyer’s currency does not have a ready world market. Although the transfer of the local currency out of the buyer’s country may not have been specifically barred, it provides little value since the seller may not be able to find a buyer for the funds.
			,m,m/,.

	===Foreign Exchange Risk===		===Foreign Exchange Risk===

35.10.173.40 at 12:41, 26 September 2007

2007-09-26T12:41:52Z

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	Plant and equipment of an international company are marked to market at year-end for financial reporting purposes. Conditions throughout the year have caused a decline in the value of the currency of their foreign holdings of 20%. This decline has the immediate affect of reducing the value of these assets by 20%, which then has the direct impact of reducing the company’s profitability for the year by the same value even though no direct transaction has occurred other than the revaluation to create this loss.		Plant and equipment of an international company are marked to market at year-end for financial reporting purposes. Conditions throughout the year have caused a decline in the value of the currency of their foreign holdings of 20%. This decline has the immediate affect of reducing the value of these assets by 20%, which then has the direct impact of reducing the company’s profitability for the year by the same value even though no direct transaction has occurred other than the revaluation to create this loss.

			<div style="float:right;">[[Introduction to Political and Economic Risk/Country-Related Risks\|Prev]] \| [[Introduction to Political and Economic Risk/Cultural Risks\|Next]]

	[[Category:International Business]]		[[Category:International Business]]