Evaluating significant risks in international trade of e7 economies with AHP methodology

Abstract

The purpose of this study is to evaluate the risks encountered in the international trade process. E7 economies are included in the study. For this purpose, six criteria that should be taken into consideration are determined by considering similar studies in the literature. In the analysis process of the study, AHP method is used to identify which type of risk encountered in the international trade process is more important. In this process, opinions are received from three different experts on the subject. It is concluded that the exchange rate risk is the most important in this process. In addition to this situation, political risk and payment risk are other important factors for this situation. On the other side, it is also determined that documentary risk and carriage risk have lower role in comparison with others. Accordingly, it is essential for companies to take the necessary measures. In this context, it is possible to decrease the exchange rate volatility by using financial derivative products.