one-page paper about what are project risks companies consider when deciding to enter and invest into...

one-page paper about what are project risks companies consider when deciding to enter and invest into new markets and how a company manages and reduces those risks.

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Expert Solution

Companies that enter into new markets face following risks-

Political risk- If companies go to other countries or go global, they face political risk, their rules and laws are different from domestic country.

Exchange rate risk- When companies enter into new international market, they face currency risk, currencies keep of fluctuating.

Competition- Companies face the tough competition from the existing players in that market.

Culture and taste- Sometimes when companies enter into new market and have not done proper research, they may face cultural issue, people's taste and choice keep on changing.

Mitigating the risk-

Diversification- Companies should diversify their business by launching products for different segments and by manufacturing more products in their product line so that their product portfolio may be balanced.

Proper research- Company should do proper primary and secondary research so that their product in new market may not fail.

Quality product with less price- Company should provide best quality product at low prices in new market so that it can face the competitors.

jeff jeffy answered 2 months ago

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