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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.
