Risks in International Business - 1110 Words

IBM 530 RISK IN INTERNATIONAL BUSINESS. GROUP ASSIGNMENT. PREPARED BY : NURUL SYAZWANI BINTI BADIOZAMAN SYAMIMI BINTI MOHAMMAD NAWAWI SHAKIRAH BINTI MD YUSOFF SITI SARAH BINTI KHALID NOOR KHALIDA BINTI ISMAIL ( BM224 – OPERATION MANAGEMENT ) PREPARED FOR : TN HJ MOHD SUKOR BIN MD YUSOFF Risks In International Business . International business manager must be fully aware of all the risk involved by conducting due diligence and risk assessment before venturing into international markets. Sometimes other invisible factor such as having proper connections comes into play, and which will contribute to the risks in conducting a business internationally. Some of risk in international business is Business risk,†¦show more content†¦It is a risk that can be understood and managed with reasoned foresight and investment. Broadly, political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions or â€Å"any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives†. Political risk faced by firms can be defined as â€Å"the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labour, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection).† Portfolio investors may face similar financial losses. Moreover, governments may face complications in their ability to execute diplomatic, military or other initiatives as a result of political risk. An important aspect of running a business of which an entrepreneur should be aware. A type of risk faced by investors, corporation and governments. Broadly, it refers to the complication business and government may face to political decisions or any political changes Political risk faced by the firms can be defined as the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket asShow MoreRelatedRisk Management Course of International Business838 Words   |  3 PagesRecently, There are some personal reflections a great learning exp erience in the course of risk management of international business. I would like to share in this journal. It has been a long time since I defined the most fundamental and strong motivation of corporations is maximizing business profit. 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