International Risk Management

International Risk Management

No profit was ever made without taking some financial risk. However, economists such as John Eatwell and Lance Taylor have argued in their text Global Finance at Risk: The Case for International Regulation that international financial markets are intrinsically and particularly apt to pose the threat of risk to potential investors on an individual and a corporate level. Investors in finance base their decisions on guesses, not only about how other investors within a nation will behave, but also about national stability, which affects the stability of the currency. As markets have grown more global in scope, industrialized countries often have pursued a more ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

must be embarked upon, but judiciously. Unfortunately, as of late, the U.S. economy has become particularly vulnerable to charges of risk because of its current account deficit with other nations, the unwillingness of foreigners to buy U.S. securities based on the increasing national debt, which shows no sighs of abating, and also the perception that U.S. consumers as a whole lack confidence in their economy's growth potential. (Eatwell & Taylor, 2000) The U.S. dollar has been steadily weakening as a result. The United States' continued investment in Iraq and the ever-strengthening Euro does not bode well for the dollar as a currency, although investors with no political or personal interest in the U.S.'s financial health can at least take comfort in the apparent stability of this downturn, when hedging their investments, in the dollar's fortunes, if not its overall impact upon the fortunes of the United States' economy and goods sold abroad. (Schnaue, 2004)
Besides ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.

Already a member? Login


International Risk Management. (2017, August 28). Retrieved February 24, 2019, from
"International Risk Management.", 28 Aug. 2017. Web. 24 Feb. 2019. <>
"International Risk Management." August 28, 2017. Accessed February 24, 2019.
"International Risk Management." August 28, 2017. Accessed February 24, 2019.
Join today and get instant access to this and 50,000+ other essays

Added: 8/28/2017 02:21:17 AM
Category: Economics
Type: Premium Paper
Words: 1047
Pages: 4

Save | Report


Save and find your favorite essays easier

CIS 333 Identifying Risk and Re...
International Monetary System
Oil In April 2000
Reorganisation Of The Nhs
Financing In The EU
China 2
Investing In Canada
International Business Ventures
Copyright | Cancel | Contact Us

Copyright © 2019 Essayworld. All rights reserved