International Risk Management

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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 ...

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