engleski

Country Risk Management Practices – Evidence from Croatian Companies

In today’s globalized world characterized by economic, social and technological changes, international trade represents one of the most important levers of economic development of any country. Positive impacts of international trade directly reflect on GDP, employment and technology transfers and indirectly on competitiveness, country credit rating etc. History shows that companies that are successful in domestic market often fail in foreign. This is due to the fact doing business in foreign market is much more complex in terms of market riskiness. Market risks are greater due to the insufficient information pertaining to political, economic and cultural factors or inadequate quality of such. This provides a strong reason for understanding in what ways companies analyze, manage and control different components of market risk when expanding abroad. To analyze this authors conduct both primary and secondary research. Majority of companies analyzes risks simply by rules of thumb or doesn’t analyze it at all because they believe that cost would exceed the benefits. At the end authors propose implications and ideas for further research.

international trade; risk management; market risk

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