FOREX Risk Administration in Sinaloa's Micro-Industries: Case Study

FOREX Risk Administration in Sinaloa's Micro-Industries: Case Study

Jéssica Frías Sánchez, Deyanira Bernal Domínguez, José G. Vargas-Hernández
ISBN13: 9781799874362|ISBN10: 1799874362|EISBN13: 9781799874379
DOI: 10.4018/978-1-7998-7436-2.ch013
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MLA

Sánchez, Jéssica Frías, et al. "FOREX Risk Administration in Sinaloa's Micro-Industries: Case Study." Handbook of Research on Strategies and Interventions to Mitigate COVID-19 Impact on SMEs, edited by Neeta Baporikar, IGI Global, 2021, pp. 267-279. https://doi.org/10.4018/978-1-7998-7436-2.ch013

APA

Sánchez, J. F., Domínguez, D. B., & Vargas-Hernández, J. G. (2021). FOREX Risk Administration in Sinaloa's Micro-Industries: Case Study. In N. Baporikar (Ed.), Handbook of Research on Strategies and Interventions to Mitigate COVID-19 Impact on SMEs (pp. 267-279). IGI Global. https://doi.org/10.4018/978-1-7998-7436-2.ch013

Chicago

Sánchez, Jéssica Frías, Deyanira Bernal Domínguez, and José G. Vargas-Hernández. "FOREX Risk Administration in Sinaloa's Micro-Industries: Case Study." In Handbook of Research on Strategies and Interventions to Mitigate COVID-19 Impact on SMEs, edited by Neeta Baporikar, 267-279. Hershey, PA: IGI Global, 2021. https://doi.org/10.4018/978-1-7998-7436-2.ch013

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Abstract

The present work is related to the administration of the exchange risks in an industrial microenterprise of Sinaloa. Its objective is to contrast the effect obtained on the decision-making process by managing the exchange risks inherent in the businesses that buy imported raw materials in order to be able to produce their goods that they commercialize. For this reason, it is based on a literature review contained in scientific articles, books, and theses where evidence was found that it is possible to reduce risk through the use of derivative instruments such as European futures and options contracts. The methodology is qualitative with the case study. The results indicate that it is possible to manage the exchange risk using derivative products in the microenterprise studied.

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