INTERNATIONAL BUSINESS 10 QUESTIONS Essay Example | Topics and Well Written Essays - 500 words

INTERNATIONAL BUSINESS 10 QUESTIONS - Essay ExampleIf there are adverse economic conditions tinting the business environment in one state, they may escalate and affect other countries and have a high chance of ending up adopting global proportions.Most of the small global firms might find themselves un fit to adequately compete on the international market as a issue of lack of enough resources. This might cause them to eventually be forced tabu of business.Political Risk is the peril that a business or individuals investments could end up suffering a huge loss mainly due to a result of a countrys instability or governmental changes in a countrys legislative body, government, array control or other foreign policy makers. It is also commonly referred to as geopolitical risk, small-arm economic risk is the risk that a countrys macroeconomic conditions like government regulations, switch rates and political stability will affect a business entitys investment in that country to be economically unsustainable as a result of its profit revenues not being ample enough to repay its debts and cover its every day operating costs. On the other hand, legal risk is the risk that a companys business transactions will contravene the regulatory policies in a country or parties in a business contract are not able to enter into any business contract.Managers can manage political risks by better understanding the political uncertainties in a given country and employing the use of mitigation tactics like risk diversification, ingenious property safeguards and buying political insurance.A subsidy is a form of assistance made more often than not by governments mostly in the form of tax deductions or cash payments, to businesses like producers and have the result of being distributed as subventions within a given pains with the intention of preventing the overall decline of that industry in the interest of the general public.4. (TCO D) Despite its advantages, FDI has bee n described as an expensive