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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:
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:
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
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