In response to the information about globalized economy, global trading is not always a negative effect on local economy. It is widely acknowledge that when there is an investment from foreign companies in local country, it takes advantages from local resources. However, local workers also get benefits from foreign investment. When foreign investors invest in local countries such as new firms and factories, they hire local labours to work then workers have more opportunities to get jobs. Moreover, labours earn more income, so they and their families have better lives. In fact, foreign investment is not only beneficial for foreign investors but also local workforce. The second point is about the exchange rate fluctuation. It can be a major effect on the business transaction in foreign currency. When the exchange rate is fluctuated, the profit of local companies which do businesses with foreign organizations can turn to be loss. Nevertheless, there are numerous methods associated with a currency hedging. Currency hedging is the way to eliminate the risk from the exchange rate while doing an agreement to buy or sell a foreign currency on a specified date for a specified price. Therefore, the impact of currency fluctuations can be controlled by the currency hedging.
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