A practical approach for entrepreneurs and investors Entrepreneurial Finance provides readers with the fundamental knowledge to finance, start, grow, and value new ventures, without the complex finance terms and calculations. This comprehensive yet practical approach incorporates a global perspective that appeals to entrepreneurs, investors, and students with diverse backgrounds, knowledge, and experience. From Facebook to Camera+, Gary Gibbons, Robert D. Hisrich, and Carlos M. DaSilva use real-world examples and their professional experiences to bring concepts to life. This text is one of the most readable books in the market without compromising high quality content and resources.
Chapter 10: Risks of doing Business Internationally
Risks of doing Business Internationally
- To learn about “transaction risk”
- To learn about “translation risk”
- To understand hedging with forwards, futures, and options
- To understand liability swaps
- To understand other methods of controlling risk
- To understand financing trade with letters of credit
Case: Baja'd Out Clothing Company
The Sea of Cortez is located on the west coast of Mexico and lies between mainland Mexico and the Baja California peninsula (which, [Page 198]while Mexican territory, is actually the lower part of California). The peninsula extends southward from the California border 800 miles to where it ends at Cabo San Lucas. Sailing, sport fishing, scuba diving, sun worshipping, and of course cerveza and tequila form the basis of the lifestyle. Having spent enough time on the “sea” to ...