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Key Risks of Internationalization

  • Adriana Calvelli
  • Chiara Cannavale
Chapter

Abstract

During their internationalization processes, firms face different kind of risks, and the capability to reduce their effects and to find out the best hedging techniques is a fundamental factor of strategic success. Firms need to become aware of the different nature of risks, in order to handle with them, and try to reduce their potential effects on profitability. We consider both counterpart, and financial risks, and give some insights into the basic hedging techniques firms can use. The focus is on the firms, so we don’t refer to intermediaries and financial institution, but keep attention on firms’ hedging. Together with the risks, we consider the financial management of international firms and refer to reinvoicing centres as a possibility to manage the global activities with high efficiency.

Keywords

Financialization Financial risk Country risk Hedging Reinvoicing 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Adriana Calvelli
    • 1
  • Chiara Cannavale
    • 1
  1. 1.Parthenope University of NaplesNapoliItaly

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