More and more businesses are realizing greater profit potential by selling their products and services in other countries on an international scale. However, there are challenges that businesses face when exposed to foreign exchange risk in addition to standard business and financial risk. Identify two United States companies that have entered the international arena and report their successes or failures in offering their products to the international market. What financial risks, if any, have they incurred throughout the process?
Foreign Investment Risks:
When an entity makes a decision to invest in an international country, the entity takes on additional financial risks which may not have previously been present. Primarily, these risks are related to foreign investment and foreign currency.
Answer and Explanation:
Many United States companies have entered into the international arena. Two companies which have entered the arena are Uber and Nike. Uber has...
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fromChapter 1 / Lesson 4
In this lesson, you will explore the various types of risks faced by a business and understand how financial risk is different from other types of risks. Then, you will learn about the different types of financial risks and methods to manage them.