Do Foreign Currency derivatives such as futures, options, and swaps have an impact on the risks associated with international finance

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Do Foreign Currency derivatives such as futures, options, and swaps have an impact on the risks associated with international finance? 

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There are many risks involved in international finance. Some of them are listed below:

1.) One of them is foreign currency risk or foreign exchange risk. Foreign exchange risk occurs due to change in the exchange rates.

2.) Other risk is Interest rate risk. Interest rates can decrease or increase which could affect the business.

3.) Changes in commodity prices will affect the businesses that rely on international market for procuring raw material.

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