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International Risks

In: Business and Management

Submitted By nicazor
Words 2079
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Political environment, which is more important especially large international business, requires high investment. More consumers sought after more goods, more service and besides last pay back time.
The political systems have two types namely; democracy and totalitarianism.
Economic environment, which is required in home country, host country and world economics, are supporting or objection for international business and relation to suppliers. Economic growth affects on politics social and lows, the found political system and situation politics in country, and the world has direct affects on economic and business. Social and culture are foundation of living and work for humans, they has an impact on characteristic to work and every day life. For lows, it is convention for country activities including economic activities and business. Therefore economics, political, social and lows are closely bound in terms of relationship.
Technology environment refers to new knowledge factor in the world such as sciences or engineering and including strategic management because marketing competition enforce each country to invent new knowledge or know-how benefit for its own business development. Each country that has new knowledge must create new products; have low capital and high efficiency in order to keep pace with the international competitors and to respond the customers’ needs in the international market.
When the country enters into international business, they must encounter risks in international business, which can be listed as four categories as following;
Country risk is associated with intervening of the government, protectionism, trading and investing barriers, social disturbance and instability of politics, economic malfunction and unorganised, unsatisfied of foreign companies in legal sanction, bureaucry, managerial postponements and bribery,...

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