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    How do you explain the concept of economic risk in the context of global business?

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    2. How do you explain the concept of economic risk in the context of global business?

    © BrainMass Inc. brainmass.com October 9, 2019, 6:15 pm ad1c9bdddf
    https://brainmass.com/business/international-finance/concept-economic-risk-context-global-business-83262

    Solution Preview

    There can be various economic Risk in the context of global business. Examples include exchange controls, currency inconvertibility, and blockage of funds. currency fluctuation.

    Global business and foreign exchange

    When the value of the dollar falls or weakens in relation to another currency, prices of goods and services from that country rise for U.S. consumers. It takes more dollars to purchase the same amount of foreign currency to buy goods and services. That means U.S. consumers and U.S. companies that import products have reduced purchasing power.

    At the same time, a weak dollar means prices for U.S. products fall in foreign markets, benefiting U.S. exporters and foreign consumers. With a weak dollar, it takes fewer units of foreign ...

    Solution Summary

    The expert explains the concepts of economic risk in the context of global business. Tutorial is about 400 words plus two references.

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