International aspects of a business decision

Reference no: EM13720941

As an owner of a visible business that is valued in the community, you are making a final decision regarding the international aspects of a business decision, and you 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. Two main considerations are central to the decision:

1. Would the government encourage a decision to expand?

2. How would it affect the reputation of the business?

Your assignment is to fill in the table and then provide a brief summary of your decision, highlighting the two above considerations. The following are instructions for completing the table:

A. Choose an industry with which you are familiar or have an interest.

B. For each risk type listed in the table, indicate with an X in the appropriate column whether the risk will affect them as an importer or an exporter.

C. Also, make an assumption of what type of business (large, medium, or small) you will be using for each risk type by marking L, M, or S in the column.

D. Using these factors, provide a brief answer on how to overcome the risk for the industry and the business.

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

Reference no: EM13720941

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