FOREIGN TRADE COMPANIES' CURRENCY MANAGEMENT: EXAMPLE OF THE TRC3 REGION'S

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Year-Number: 2023-142
Yayımlanma Tarihi: 2023-07-14 12:20:30.0
Language : İngilizce
Konu : Uluslararası Ticaret
Number of pages: 191-205
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Abstract

The purpose of this research is to examine how foreign trade companies in the provinces of Mardin, Sirnak, Siirt, and Batman (TRC3 region) are protecting themselves from foreign exchange risk.A survey of 275 foreign trade companies operating in the TRC3 area was carried out in order to analyze the strategies employed by businesses to protect themselves against exchange rate risk. Multiple linear regression and Pearson correlation analyses were performed on the survey items.The findings lead to the conclusion that 14.1% of the companies operating in the TRC3 region are unable to take any action to protect themselves against exchange rate risk, while 39% can be protected by internal business measures, 33.9% receive assistance from banks or other financial institutions, and 5.7% gain from consulting firms.According to the findings of the study, enterprises do not take adequate measures to hedge against exchange rate risk. Additionally, it is discovered that companies employ derivatives less to protect themselves against currency rate risk. In addition to that enterprises should be more cautious about future currency rate shocks and engage in more derivative trades.

Keywords

Abstract

The purpose of this research is to examine how foreign trade companies in the provinces of Mardin, Sirnak, Siirt, and Batman (TRC3 region) are protecting themselves from foreign exchange risk.A survey of 275 foreign trade companies operating in the TRC3 area was carried out in order to analyze the strategies employed by businesses to protect themselves against exchange rate risk. Multiple linear regression and Pearson correlation analyses were performed on the survey items.The findings lead to the conclusion that 14.1% of the companies operating in the TRC3 region are unable to take any action to protect themselves against exchange rate risk, while 39% can be protected by internal business measures, 33.9% receive assistance from banks or other financial institutions, and 5.7% gain from consulting firms.According to the findings of the study, enterprises do not take adequate measures to hedge against exchange rate risk. Additionally, it is discovered that companies employ derivatives less to protect themselves against currency rate risk. In addition to that enterprises should be more cautious about future currency rate shocks and engage in more derivative trades.

Keywords