Discuss risks in moving into an international environment M

Discuss risks in moving into an international environment M Austin posted May 23, 2018 1124 AM Subscribe Provide definitions and examples. 9 18 Unread Replies Views Low Cost Options M Austin posted May 23, 2018 1125 AM Subscribe Provide definitions and examples. 2 Unread Replies Views

Solution

The risks in moving into an international environment / business:

1) Strategic Risk: The strategic risk of going international are changes in production and reduction in corporate income to cater the competitions.

2) Political Risk: Changes in the government on international forum will affect the supply of resources and products and ultimately the production efficiency.

3) Country Risk : The changes in the culture of country will let the production and profits to lack and not allow the company to operate international forum.

4) Operational risk: In international environment any breakdown of machines, inadequate supply and demand of the resources and lack in logistic and inventory will let the operational risk to raise.

5) Environmental Risk: The lack in the perfect environment conditions will let the international business to get affected like Air, water and environmental pollution.

6) Economic Risk : The lack-ness in financial obligations and international exchange rates of currencies will affect the business adversely.

7) Technological Risk: At any time, any kind of technological lack-ness will increase in the capital cost of business and also failure of the business both domestically and internationally.

8) Financial Risk: Lack of financial resources and inflation and recession will reverse the profits of the business internationally due to operating in inefficient capacity and cost factors.

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