Question

In: Finance

Define the risk factors in doing business in the international markets. Why are large corporations interested...

Define the risk factors in doing business in the international markets. Why are large corporations interested in working abroad in foreign countries facing different cultures, languages, laws, and regulations?

Solutions

Expert Solution

Risks in doing international business are as follows-

A. Risk of fluctuation in the foreign exchange rate

B. Risk of continuous monetary policy change across different nations

C. Risk of change in rules and regulations about foreign trade

D. Risk of political instability across different nations

E. Risk of change in taxation

various multinational companies are interested in working in different countries because they are helping themselves to get a cost advantage and they will also be having a large market share and it will also offer them with exploring such geographical locations which will provide them with additional competitive edge and help them collaborate with multiple companies in order to expand their business.


Related Solutions

Define fisher effect and explain three reasons why it is also applied to international markets.
Define fisher effect and explain three reasons why it is also applied to international markets.
Perform research on Risk Assessment in large corporations (any facet of risk assessment – such as...
Perform research on Risk Assessment in large corporations (any facet of risk assessment – such as email policies, wifi usage, web access, or physical security). Now, imagine you are the security manager for that company. How could you implement a company-wide email policy to minimize risk from intruders or misuse? Write a posting explaining your plan. Post between 100 and 200 words for your initial post.
1. Why does many companies entering international business ignore the element (cost) of doing business overseas?...
1. Why does many companies entering international business ignore the element (cost) of doing business overseas? 2. What were some of the reasons interest dropped on freight derivatives in 2002? Had this occurred to a lesser extent at any time previously?
Why and how strategic partners are beneficial in doing international business and investment? Please analyze your...
Why and how strategic partners are beneficial in doing international business and investment? Please analyze your answer with strategic business alliance examples.
What are the factors that contribute to the risks of doing business in a country?
What are the factors that contribute to the risks of doing business in a country?
Corporations often “vote with their feet” in terms of doing business where expenses are lowest and...
Corporations often “vote with their feet” in terms of doing business where expenses are lowest and revenues are highest. Buying low and selling high is a basic economic formula for success that has motivated international trade in many ways over the centuries. This is popularly discussed when governments consider tax policies and is also applicable when they also consider the less obvious factor of environmental protections laws. If Mexico has no ban on DDT (a pesticide used in agriculture) and...
Describe the political risk, economic risk, and legal risk in doing business in a foreign country.
Describe the political risk, economic risk, and legal risk in doing business in a foreign country.
define the concepts of monopoly and oligopoly and discuss the extent to which large corporations are...
define the concepts of monopoly and oligopoly and discuss the extent to which large corporations are no longer engaged in competitive economic activities
Why do international financial markets exist?
Why do international financial markets exist?
What are the factors that determine the costs of doing business in a country? When is...
What are the factors that determine the costs of doing business in a country? When is the establishment of owned subsidiaries in a foreign market NOT recommended? 200words
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT