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    Risks of Operating in an International Market

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    • Start by explaining what are political risks and what are economic risks of operating in an international market?
    • Then, choose an organization operating internationally.
    • How should the firm's management approach these kinds of risks?

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    For Instructional Purpose

    Political Risks: Political risks indicates the threats, dangerous conclusions or incidents that will result in unfavorable business outcome for organizations that are operating their businesses in nations away (other international countries) from their own.

    Political Risks of Operating in an International Market Includes:

    • Taking over the foreign business by the host country's government in times of war eruption in the host country.
    • Exploitation such as physical violence or attack by indigenous groups of host country against workers or employees of foreign business.
    • Protests from established local business group of a specific industry of the host country to disrupt a foreign business operation for reasons of losing customers to the foreign business, foreign business causing environmental catastrophe, and not hiring enough local workers from the host country for example.

    Economic risks of operating in an international market?

    Economic risks ...

    Solution Summary

    The risks of operating in an international market are examined.