Poslovna izvrsnost, Vol. 3 No. 1, 2009.
Pregledni rad
THE ROLE OF HEDGING IN THE PROCESS OF GLOBALIZATION
Ivo Šperanda
; Dubrovačke ljetne igre
Sažetak
Future markets are the result of trying to eliminate or reduce risk, i.e. an attempt to avoid instability of prices in international business. Since trading on future markets reduces the risk of business, it significantly increases the scope of trade and number of stakeholders, which logically leads into integration processes. Economic integrations when regarded as binding, connecting, uniting of business functions or the entire markets are inevitable in all-prevailing trend of globalization which, when regarded economically is the process of involving the company in international business. Constant alteration of factors in international business results with the fact that existing forms of business relations do not respond to newly arisen conditions, thus permanent changes are necessary. This dynamics of business and market relations generates the increasing degree of business risk to which companies react with strategies aiming to eliminate or reduce the risk. Futures markets, i.e. stock markets and business exchange are one of the most interesting and the most important segments of international trade. Futures markets offer us the great possibilities for business activities; they enable the realization of speculative operations, as well (IS hedging operations by which the risks of price increase and decrease are neutralized. The role of futures markets in the world economy has a huge importance; unfortunately, Croatia belongs to those countries which still have not even developed basic financial derivatives. On the other hand, we witness the major problems in business activities regarding instability, risk and great market sensitivity. This paper shows the historical development of future markets and their influence to different sorts and degrees of economic integrations. It demonstrates as well the mutual connection and conditionality of future markets and integrating processes.
Ključne riječi
futures market; risk; economic integration; globalization
Hrčak ID:
41085
URI
Datum izdavanja:
30.6.2009.
Posjeta: 2.712 *