Discuss the risk difference between domestic and foreign financial markets
Answers
Answer:
Marketing is defined as the set of activities which are undertaken by the companies to provide satisfaction to the customers through value addition and making good relations with them, to increase their brand value. It identifies and converts needs into products and services, so as to satisfy their wants. There are two types of marketing namely, domestic and international marketing. Domestic marketing is when commercialization of goods and services are limited to the home country only.
Answer:
International financial management involves a lot of currency derivatives whereas such derivatives are very less used in domestic financial management. ... Foreign exchange risk refers to the risk of fluctuating prices of currency which has the potential to convert a profitable deal into a loss making one.