The risk of foreign exchange in internatıonal corporations and the techniques against to this risk: An application

In the recent years the exchange markets have developed in parallel with international trade volume and because of the rapid transmission of information and the realization of transactions without restriction have made this markets the perfect markets in the world.With the developing world economy, especially after free exchange rate system is adopted, the international corporations faced risks arising from fluctuating exchange rates. High volatility in foreign exchange rates can have a severe impact on an institution's cash flaws if rate trends continue to run in an unfavorable direction and effects corporations and economies considerably.Exchange rate risk do not only threaten the corporations which import and export, but also the domestic firms even those people and organizations who do not deal with foreign exchanges. This situation forces the corporations to take measures in order to be protected from foreign exchange risks. For that reason, major financial instutions have developed new hedging techniques which can be used for protection from foreign exchange risks.. These new techniques can be classified as forwards, futures, options, and swaps.The study on ?The risk of foreign exchange in internatıonal companies and the techniques against to this risk:An Application? , international companies, exchange markets and foreign exchange risks are researched and developing of exchange markets in Türkiye is viewed and the techniqes which can be used by international corporations against the risk of foreign exchange analyzed in detail. And finally, the techniqes are analyzed in terms of an importer and exporter, and tried to analyze the best technique for the companies in the prevailing conditions.Key Words: İnternational, Corporations, Foreign Exchange Market, Foreign Exchange Risk, Derivatives, Hedging