This is a timely discussion given the current global events surrounding the pandemic, Markets are interconnected and
Question:
This is a timely discussion given the current global events surrounding the pandemic, Markets are interconnected and can be fragile. The US stock market is down again today, based on Congress not passing the proposed stimulus. If it is passed, the Dow may go up again-world events can have dramatic Impacts. For companies doing business in other countries, due diligence and research must be conducted in at risk countries which could include natural disasters or corrupt governments or civil war. American companies do business in many conflict zones, including Iraq and they take a much greater risk than normal. A cost-benefit analysis is the key before entering into a risky market. what are some mitigation techniques companies can employ?
An Introduction to Derivative Securities Financial Markets and Risk Management
ISBN: 978-0393913071
1st edition
Authors: Robert A. Jarrow, Arkadev Chatterjee