Currency Risk Management An Exploratory Study from the Perspective of Entrepreneurs and Established Cross Border Traders from India

Abstract

The very Title of the thesis is all about critical analysis of International Business deals (referred to as CBT deals) undertaken by global traders particularly after Globalization. newlineIn business comprises of Imports and Exports of goods and services, Investment of Capital in plant and Machinery, Investment in Services like Banking, Communication, Tourism, Investment in human capital, I.P.R etc. newlineWhile carrying each of the above activities Risk involved is relatively more in Cross Border Trade rather than domestic Trade and hence, RISK Management has become integral part of Cross Border Trade which otherwise is considered as complex mechanism comprising of Derivative tools, models and Hedging Techniques. newlineThe whole Research undertaken revolves around otherwise complex Risk Management Process and aims to simplify same especially for entrepreneurs and established traders as well who are participants in Cross Border Trade newlineThe analysis of Risk Management done and covered in this thesis enabled Researcher to explore and unfold following facets of Risk newlinel) Identifying most dominant RISK, newlinell) Usage of Derivative tools to manage the Risk, and most importantly, newlinelll) Capability of traders to equip and manage the Risk newlineTo probe into each of above facets the Research Design adopted is Exploratory in nature that explores, analyses and unfolds all above facets of Risk through correspondingly well designed and developed chapters and conclude with specific recommendations in the form of guidance to Cross Border Trade. newlineAt Micro level significance of Research is in promoting Cross Border Trade by inducing more traders to enter and optimize their returns and simultaneously help immobilizing scarce resource called quot Foreign Currency quot required for developing economies in reducing Balance of Payment Deficitquot at Macro level. All this will fulfill the aim of Global Welfare. newlineThus, Research has high empirical significance and value. newline