Name: Shello Arellano Subject: BESR

Prof.: Mr Ryan Endrinal Schedule: 9:20 – 10:20

I. Identification. Write your answer on the space provided.

Country Risk 1. It covers the uncertainties of political systems and the internal dynamics of societies.
Settlement risk 2. It covers the external uncertainties of running financial processes as well as of
operating sequences.

Market risk 3. It covers the uncertainties of factors inside markets in relation to price mechanisms and
valuation.

Operational risk 4. It extends to parameters and structures of internal organizational processes in

relation to individual misbehaviour and individual failure, covering therefore the efficiency of adequate
integration of an organization’s members.

Credit risk 5. It covers the uncertainties of external economic influences on resources needed from the
economic environment. This relates to external circumstances other than those of the respective actor,
e.g., the repayment of a credit.

Social Market Economy 6. It is quite often justified or equally criticized by others saying that the role
of the “social” is to correct the “antisocial” consequences of the market.

Country risk and settlement risk 7. It refers to losses that accrue from unrecovered loans or from
contracts with business partners.

Operational risk 8. It specifically identifies the failure of fulfilling the intrinsic meaning of a rule or of
all organizational guidelines due to misunderstandings and misbehaviour of individuals.

Credit risk and market risk 9. The lack of opportunities to refinance maturing liabilities (deposits) at
economic cost and terms

The Current angle of risk in business 10. It covers the fact that the consumption of resources is
higher than the production of new resources or services taking into account the effects of losses.

II. Essay.

1. Do you personally agree globalization? Explain your answer.

Yes, Because of globalization, we can communicate with different
countries, and we can also get information and services.

2. Do you this globalization helps our economy? If yes, in what way? If no, in what way it make our
situation worse?
Yes, Globalization aims to benefit individual economies around the world by
making markets more efficient, increasing competition, limiting military conflicts,
and spreading wealth more equally.