What kind of international risk factors would impact a company like Sony? Are they higher or lower in a cross border investment activity?
Risk Analysis is a formal framework that is used to evaluate the risks that organizations can face. A good risk analysis affords the organization the opportunity to decide what actions to take to minimize disruptions or decide whether the suggested strategies can be used to control risk and are cost-effective. International risk factors for Sony involve country risk which is one in which a country will not be able to honor its financial commitments and a political risk is one in which the investor privileges are affected by the regime in force. Thus it has to study different countries in which it is operating.
These risks, which arise from the actions of the host government, apply more to the multinational corporation whose cash flows are impacted. Examples include exchange controls, currency ...
This solution provides detailed explanations for international risk factors that wold impact a company.