Internationalization and Risks

Abstract

This chapter focuses on the risks associated with globalization and on the risk management techniques that may be used to mitigate them. Therefore, the main objective of the research was to demonstrate how a Portuguese company in the sector of the ship-chandler, with an activity focused on international customers, is exposed to the risks of internationalization and how it operates to mitigate such risks. Consequently, the research methodology used was the case study. It was observed that even though the company was subjected to country, credit, and foreign exchange risk, which had an impact on the functioning and activity results, it did not apply any risk-management technique. For that reason, a model for the management of these risks has been proposed in order to mitigate their impact on activity and improve and streamline future operations and financial results.