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International Risks Affecting on the Method of Entry of Banks to Foreign Markets

Abstract:
Companies and financial institutions are seeking to increase their share in world markets and earn more profit. The action also has disadvantages due to benefits. Internationalization has benefits, such as unprecedented increase in attracting foreign investment, expand trade volume and variety of international transactions and fast and growing transfer of absorption of technology that leads to the profitability of companies. Commercial even in a simple and traditional form has risks. With the development of trade at the global level, these risks tend to take a more complex form. After a detailed analysis of potential risks, companies and financial institutions can choose a way to enter the international market which, with high profits, has minimal risk. Basic objective of this study was to evaluate the international risks of Zafar and others and identify the impact of these risks on the way of entering Iranian banks to foreign markets.