RISK MANAGEMENT IN INTERNATIONAL BUSINESS
By CAMPBELL TIAN 4479657
Start a globe business relevant management of various and uncertain . Risks linked with the legal environment, politic, business environment, which show reality. Other risks come from law jurisdiction, due to international customers may not be the same laws and implementing mechanisms as their outbound suppliers. Knowing how to manege risk in international business can decrease the unessential looses.
With the positive of technology, transportation or communication has improve terrifically, thereby push the development of global trade. In the years of globalization, the bound between “overseas” and “internal” investment has become increasingly unclearly. However, investing in overseas markets now bearing additional risk, moreover opportunities, comparing with what investors generally face when investing at their own county . This paper outlines two of the most significant risks in international business and expound risk control skills to deal with them.
Foreign country's laws and Cultural and language
Every country has its own regulations when it come to import goods, taxes,since the unknown laws might cause looses in business.there is needed that fina a local business parnter to working with .
the local culture the language are not the same anymore ,you might learn the language but the others one also barely to understand what is on your mind when communicating .otherwises ,culture factor affects the decision making
Currency Exchange Rate Risk
Exchange rate risk is a financial risk which unexpected changes occurred between two currencies during agitate. The permuted rate between currency fluctuating , and can bring on bush tailed rises or losses. exchange rate risk includes economic risks translation risks , act.
A firm might got transaction risks whatever it has cash or savings account in a bank.its values were impacted by fluctuant...