Risk and uncertainty
2025年09月26日
Risk and uncertainty
Foreign operations are subject to several kinds of risk, including foreign exchange risk,purchasing power risk and political risk.Transfer pricing may be used to reduce exposure to these kinds of risk.A response to the risk of blocked funds could, for example, take the form of increasing transfer prices.By changing transfer prices, funds can effectively be moved from high-inflation countries to low-inflation ones and from countries with weak currencies to those with strong currencies.