Performance Measurement Essay

Nowadays, businesses operate in an uncertain environment and the managers can never know what will run across in the future (Arnold, 2005). Meanwhile, the economic crisis has turned that earth upside down it is a change for ever. The spheric economy was changed during the past two decades because of globalization, the firms are not only trade or invest in the companys domicile, but also trade or invest in other countries. Then circumspection will face a take of business risk in global economy. There are many different way to define risk simply, risks are opportunities to be seized. Risk management identifies risks with new opportunities to increase the probability of positive outcomes and maximize returns.The aim of this essay is identify the global challenges and risks and analyze the techniques available to financial managers to cut with risk when trade or investing in countries outside of the companys domicile. In the structure, firstly evaluate the current global economic situation and what is the challenge in this global economic situation. Secondly, identify the risks do companies face operation in uncertain global economy. Finally, it will consider and analyze the techniques available to financial managers to deal with risk when trading or investing in countries outside of the companys domicile. Outline of this essay,It is no doubt that today it is a globalization, however, due to the global economic crisis in 2008, the global economy is uncertainly and unstable. According to Arnold (2005) businesses operate in an uncertain environment and the managers can never know what will happen in the future. The global economy is divided into several situations.The one is low-income countries which CNI per capita of less than $936 and these countries have such serous social, political problems and economic that they represent limited opportunities for operations and investment.The next one is lower-middle-income countries which with a CNI per capita between $938 and $3705, such as Indonesia, Thailand and China. The consumer markets countries are increasing rapidly. Then is the upper-middle-income countries which with CNI per capita between $3706 and $11455, Such as Chile, Malaysia, Venezuela. In these countries, they have hefty education systems and high literacy rates, although wages are still significantly lower than in the advanced countries, it is rising rapidly. The last one is high-income countries which with CNI per capital higher or equal $11456. Such as Japan, Sweden, United States, Germany. (Keegan, Creen. 2011)However, the most representatives of current global economy situation are UE, USA, China