Economic risk, trade reform in S. America, Erewhon
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1. How do you explain the concept of economic risk in the context of global business?
2. Why is trade reform so popular in Latin America?
3. You are a foreign investor. What are your main concerns regarding the investment opportunities in Erewhon?
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Solution Summary
Discussions on the global business and economic risk. Also a discussion on the newly popular trade reforms in South America. A discussion on the company, Erewhon.
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Economic Risk in Global Context- In a global world of trade, it is important to understand risk is monetary and political in a variety of ways. So many different things can affect the way money is made or traded on international markets, such as war, environmental disasters, disasters that are man made, and the volatility of economies. These economies do not have to be only those with which a country is dealing, but can be with one of their trading partners or a regional groups such as the European Union, MERCOSUR, ASEAN. Within those different groups or trading partners, any problem can affect the income of a company. Also, political changes when a country goes to war is obvious, but in matters such as a change in legislative bodies, there can also be changes that affect things as diverse taxes and tariffs, supply and demand, and manner of payments to the company or from the ...
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