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Key Assignment
Draft

As a business
owner making a final decision regarding the international aspects of a business
decision, you may decide to set up a table with the risks and weigh their
relative importance against the rate of return you foresee. You also need to
put a plan in place to overcome it.

Assume that your
business is visible and an important member of the community. Would the
government encourage a decision to expand? How would it affect the reputation
of the business?

Here is what the
list looks like. Your assignment is to fill in the table.

Risk

Importer

Exporter

L/M/S

How to Overcome
It

Economic
conditions

Fluctuations in
industry

Competition

Technological
change

Change in
preferences

Costs and
expenses

Regulations

Expropriation

Interest rates

Government
monetary policy

Government
fiscal policy

Internal and
external wars

Difference in
culture and religion

Ownership of factories
and property

Human resource
restrictions

Intellectual
property

Discrimination

Red tape and
corruption

Blockage of
funds or capital accounts

Change in
government

Comment on whether
the U.S. government would support a business owner’s decision to expand
internationally or import in light of the balance of payments and how the move
internationally may affect the business’s reputation as a local small-business
owner.

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