ECONOMIC RISK MANAGEMENT IN INTERNATIONAL MARKETING

Abstract

This paper presents a risk assessment model and economic securitymanagement model for components and subsystems of internationalmarketing. The development of the model is based on the principles and tools of the classical theory of risk management, adapted to the peculiarities of international marketing. Based on the review of the literature, an exhaustive list of risk factors was formed.The purpose of the article is to determine the impact of the level ofeconomic risk on international marketing activities. To achieve this goal,theoretical and practical aspects of business risk management andinternational marketing research, risk-oriented management practices areanalyzed. One of the objectives of the study is to consider the separate and synergistic impact of management practices on maintaining economicsecurity and risk management in international marketing.The main task is to assess the impact of economic risks on themeasures and approaches of international marketing, as a result of changes in which of the factors of international marketing activities would be able to meet the principles of economic security.The structure of risk analysis is used and a model for quantitativeassessment of risk factors is developed. The model can also be used toevaluate and select criteria in international marketing decisions.National differences require managers to formulate approaches due tothe conditions in each country. Differences typically require firms to makesignificant changes to their products and services.It is necessary to use methods of business marketing riskmanagement to improve competitive advantages. Coordinated application of business risk management leads to a synergistic effect in ensuring theinternational competitiveness of enterprises and the national economy. The use of a synergetic approach is an objectively determined process that depends on a number of factors of the international business environment, the evaluation and forecasting of which is an important task in marketing decisions making.