As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the risks and weigh their relative importance against the rate of return you foresee. You also need to put a plan in place to overcome it.
Assume that your business is visible and an important member of the community. Would the government encourage a decision to expand? How would it affect the reputation of the business?
Here is what the list looks like. Your assignment is to fill in the table.
Risk
Importer
Exporter
L/M/S
How to Overcome It
Economic conditions
 
 
 
 
Fluctuations in industry
 
 
 
 
Competition
 
 
 
 
Technological change
 
 
 
 
Change in preferences
 
 
 
 
Costs and expenses
 
 
 
 
Regulations
 
 
 
 
Expropriation
 
 
 
 
Interest rates
 
 
 
 
Government monetary policy
 
 
 
 
Government fiscal policy
 
 
 
 
Internal and external wars
 
 
 
 
Difference in culture and religion
 
 
 
 
Ownership of factories and property
 
 
 
 
Human resource restrictions
 
 
 
 
Intellectual property
 
 
 
 
Discrimination
 
 
 
 
Red tape and corruption
 
 
 
 
Blockage of funds or capital accounts
 
 
 
 
Change in government