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Conduct a country risk analysis for your selected global business venture. Analyze the following risks in your paper:
(You are a US based company that manufactures plastic fittings (PVC) for irrigation systems. Up until this year, your firm has only sold to customers in the United States, but in early 2009, you started receiving inquires about your product line from farmers in Israel.)

Political, legal, and regulatory risks

Exchange and repatriation of funds risks

Competitive risk assessment

Taxation and double taxation risks

Market risks (four Ps)

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The response addresses the queries posted in 1318 words.
// A Cut throat competition is prevailing in the global market. So, 'International Business' is not an easy task. There are many risks involved in it. So, as per the instructions, here, we will discuss about legal, political and regulatory risks and their counter strategy.//

In every country, there are a different rules and regulation for the business. Every country makes its own rules and regulations for the business related activities. There are many factors governing the legal and regulatory environment like sovereignty of the nation, contractual agreement, dispute settlement arbitration policies tax structure, licensing, exit routes etc. So, before entering in the international business, the company should thoroughly analyze the legal regulatory framework of the country. Company should study about what is the arbitration process, when can any dispute arise, the contract law and the licensing policy of the nation etc. so, it should deal with the above mentioned issues in an efficient manner.

When any firm is planning to go to the other country for trading purpose, it should analyze the political situation of that country. The political frame work of nation also influences the business activity. The political factors such as the treatment of foreign firms, political stability, bureaucratic involvements, etc need to be considered. The political system of the country - socialistic or capitalistic, influences its economy. The business of the company can be affected due to the capitalistic and socialistic approach. Because in the capitalistic country, the allocation of the resources depends on the demand of the product and in a socialistic country, the allocation of the resources is controlled by the Government. If the firm wishes to do international business, it ought to consider all the factors related to political as well as legal scenario (Kirpalani, 1990).

// After studying the political and legal risks in the international business, we have come to know that these affect the business in many ways. As per ...

Solution Summary

The response addresses the queries posted in 1318 words.