CHICAGO/LONDON: International companies are taking steps to mitigate the effects of the turmoil in emerging markets, including hedging foreign currency exposure more aggressively, reducing some investment plans, cutting costs, and raising prices frequently.

While executives are not hitting the panic button just yet, and many say the risks they face are hardly unique, they are still aggressively tackling costs and making sure that revenue keeps up with inflationary pressures.

And many warn that if China suffers a credit crisis as some fear, then things could get a whole lot worse.

From Africa to Asia to Latin America, policymakers are scrambling to prop up their currencies and prevent a sudden exodus of foreign capital by jacking up interest rates and taking other steps — all this just as many emerging economies were already starting to slow sharply after a decade-long boom.

The sudden onslaught of market volatility in Turkey, Argentina, South Africa and Brazil, along with worries about an abrupt slowdown in China, means companies are now bracing for deeper reversals in demand for their products in emerging economies.

And this is happening at a time when their US dollar or euro revenues from many of these countries are also taking a hit because of plunging emerging market currencies.

Automakers Ford Motor Co. and Fiat SpA, home appliance manufacturer Whirlpool Corp and liquor giant Diageo all cited weakness and a more sober outlook in once-roaring emerging markets in earnings reports this week.

Still, for many executives, especially those with decades of experience in the developing world, wild currency swings and economic ups and downs are a fact of life that they must deftly navigate.

"We have had quite a bit of currency changes, particularly in the very weak emerging markets. But let's put it in context," Jeff Fettig, Whirlpool's chairman and chief executive said.

"We've been in the Brazilian market for over 60 years and we've managed hyper inflationary periods, busts, booms, and we've never had a loss-making year in Brazil."

Fettig said the appliance maker was not overly concerned that the downturn in emerging markets would significantly affect the company financially, since the most troubled economies account for less than 3 percent of overall revenue.

The company has taken steps in countries where currency devaluations had occurred to recoup dollar-based raw materials costs.—Reuters