Exchange rate risk and management in international trade: An application on vehicle imports

The aim of this study is to draw attention to the exchange rate risk, which is one of the important risks in international trade, to bring together approaches to the management of this risk by literature research and to conduct research on the subject in companies that import vehicles. In the first and second parts of the study, a literature review was carried out, and in the first part, the concept of risk and exchange rate risk in businesses were discussed. In this section, the definition and importance of exchange rate risk, the types and causes of exchange rate risk are explained, the development of the foreign exchange market in the international market and exchange rate systems are explained in general terms. In the second part, the methods of hedging the exchange rate risk are explained under separate headings as internal and external, and researches on the methods to be used in exchange rate risk and management are made. In the third part, the development of the automotive industry in the world and in Turkey is explained, vehicle export and import situations in Turkey are examined and a qualitative research is conducted with companies that import vehicles.