THE BEHAVIOR OF URUGUAY’S COMMERCIAL SECTOR VIS-À-VIS RISK AND THE ECONOMIC CYCLE THEORY

Abstract

This paper presents a new simple financial hedging technique for small business enterprises in Uruguay based on their owner’s personality and economic analysis under a business cycle perspective, since regular hedging techniques are somewhat complex and do not take into consideration human’s
intrinsic perceptions and emotions or economic trends. This research was inspired by the fact that the majority of Uruguayans does not understand or apply any hedging as a management plan.