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    Diminishing Risk and Operating in Foreign Countries

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    What are three things firms can do to diminish risk when operating in foreign countries? Please provide a brief explanation of each so that I can expand on it myself. I just need help getting started, not looking for someone to do the whole thing for me.

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    The major risks that a company needs to mitigate in a foreign country are foreign currency exchange (i.e. that the company will realize a loss by translating profits denominated in a foreign currency into its home country currency), economic (that the foreign country will experience an economic depression, hyperinflation, or both), political (that the government will change, especially by violent means), legal (that the country will ...

    Solution Summary

    This solution discusses the risks that American firms face when they open operations in foreign countries and offers some ways for them to mitigate those risks.