Business risk management in international trade
Internationalization often results in an increased intensity of the same risks that appear in the internal market, as well as many additional ones, such as exchange rate risks or situations arising from cultural differences. Businesses transactions in the international market are often greater in terms of value and quantity, while goods usually take longer in transport, which is why the amount and frequency of damage can be significantly higher. Therefore, it is important to manage risks, through the identification system, and to choose a strategy for dealing with risks, be it through eliminating, accepting, reducing or transferring risks to a partner or to a third party. The paper provides a brief overview of risks and the ways to manage risks in international trade.
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