We normally think of currency and banking risks as being something confined to third world or developing countries. But events in the past few years such as the Euro crisis or the financial crisis in the United States have shown that not even wealthy, developed countries are without risks on the financial side. So it is important for any company doing business in your country to carefully consider the risks that they face.
After you’ve done some research about financial issues in your country, write a 2- to 3-page paper covering the following issues:
The currency of your country: Is it stable? Does your country have fixed or floating exchange rates? Does the exchange rate fluctuate a lot?
The banking system in your country: How safe is this system? Any recent banking crisis in your country?
Overall, does the financial system in your country make it easy or difficult to do business? What kind of steps would you recommend for a company doing business in your country to hedge or minimize its financial risks? Refer to at least one of the required readings from the background materials in your answer.

Use these references:
International business finance. (2014). Pearson Learning Solutions.
New York, NY.
International trade and finance. (2014). Pearson Learning Solutions.
New York, NY. [Pay special attention to the last half of this tutorial on
exchange rates. The first half is not as important.]

Shackman, J. (2015). The economic and financial environment of
international business. Trident University International, Cypress, CA.
After going through the tutorials, get into more specifics and details with the following required readings:
Goyal, A. (2013, September 19). Dealing with currency volatility. Businessline. [ProQuest]

Agarwal, O. (2009). Chapter 5: Foreign exchange risks. In International
Financial Management. Mumbai, India: Himalaya Publishing House. [Ebrary].
The following book chapter is especially important for the discussion about managing marketing and production operations in response to changes in exchange rates at the end of the chapter:

Avadhani, V. (2010). Chapter 7: Management of international transaction exposure.
In International Financial Management. Mumbai, India: Himalaya Publishing House. [Ebrary]