Political And Business Risks By Withglobal Business

1310 WordsNov 27, 20156 Pages
Page: 5 of 6 Running head: POLITICAL AND BUSINESS RISKS Last Name 1Prepare a paper that addresses the political and business risks and the rewards associated withglobal business operations.Include a discussion of the impact of monetary exchange rates oncorporate profits. Your NameAmerican Military UniversityFINC300 POLITICAL AND BUSINESS RISKS Last Name 2Political and Business RisksMost corporations all over the world expand their operations into new geographicallocations in order to increase their profitability. As these companies expand into the new regionsand have high profitability, there are a number of risks…show more content…
The risk is sometimes referred to as sovereign risk. Primarily, political risks affectvarious aspects of an international business that hinders its growth. The political instability in acountry may make it difficult for multinational businesses to operate efficiently. This comes as aresult of the negative publicity that the political leaders create in the country. Political differences POLITICAL AND BUSINESS RISKS Last Name 3between various countries may negatively impact on the global business operations. As such, afirm cannot effectively operate to achieve its full capacity and maximize its profits. Political risksalso include the legal legislations that a country imposes on the international businesses that openup their operations in these countries. The government may devise a policy that limits theoperations of the multinationals in the country. Such legislation by the government is a hindranceto the efficient operation of the international businesses.Business risk refers to the likelihood that a company will have lower profits thanexpected (Wild & Han, 2014). There are a number of factors which influence the risk; theyinclude the price of commodities, sales volume, competition, the economic conditions and thegovernment interventions. These factors negatively influence the global business operations.Therefore, as large

More about Political And Business Risks By Withglobal Business

Open Document