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.

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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