Assessment of exchange risk management techniques used in foreign trade in the context of financial knowledge level: TR33 region example

Foreign trade is important in increasing the economic development and development levels of countries today. For this reason, countries are implementing policies aimed at increasing foreign trade volume. Foreign trade is important for firms as well as for their profitability and sustainability besides country. However, foreign trade operations seem to be easy, but there are different risks that companies may encounter. One of the most important of these risks is exchange rate risk. Foreign exchange rates are constantly fluctuating with the impact of globalization. These fluctuations can have negative effects on the profits, competitiveness and firm values of foreign trade firms operating in different currencies. In order not to encounter these negativities, companies should manage the exchange rate risk successfully. In the study, it is aimed to investigate the level of information about the exchange rate risk management techniques and the usage levels of these techniques of the firms operating in the provincial centers of TR33 with 250 or more employees. As a result of the research, it is concluded that the participating firms do not have enough knowledge about these techniques and therefore their usage level is low.