In the complicated international trade, many multinational trading companies play a very important role. They trade products of different countries with comparative advantages from one country to another and earn the difference while promoting the development of international trade. However, as an international trading enterprise, its characteristics are related to the currency revenue and expenditure of several countries, and generally low gross profit. Therefore, fluctuations in foreign exchange rates are often one of the important factors affecting the profits of international trading enterprises. Therefore, relevant enterprises need to take effective measures to ensure the relevant profit margin. This article takes Japanese-funded multinational trading companies as an example to analyze the foreign exchange risks faced by multinational trading companies in the course of their operations due to their business specialities. It also analyzes the importance of foreign exchange risk management based on the actual situation, and proposes relevant countermeasures to reduce foreign exchange risk.
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