Business & Finance Corporations

Global Business Risks

    Financial Market Fluctuation

    • Global businesses by nature do business in many different countries around the world. As such, the operations of the business may be impacted by fluctuations in international financial markets. If XYZ corporation operates in Greece, Ireland and China, for example, financial turmoil in Greece or Ireland may damage not only operations in those countries, but also operations in China and other locations. According to North Carolina State, one of the top risks involves securing a solid line of credit. With financial markets in flux, credit is not always readily available, so businesses must be able to adapt to changing financial markets.

    Civil Unrest in Response to Economic Disparity

    • In a report published by the World Economic Forum, two risks facing businesses in 2011 and those going forward involve economic disparity and the lack of global governance. As the report points out, business globalization allowed profits to increase, but the profits were not evenly spread out. Workers may feel shirked by the companies that make landfall profits. Nationalism and populism may create conflict between the workforce in the various countries where the company operates and the business may be cast in the light of harming the country and the national interests. Furthermore, conflict with no relation to the business may break out -- such as civil war or unrest -- and the business can suffer.

    Failure to Adhere to Customs or Etiquette

    • The people brokering the deals with foreign nationals and entrepreneurs to break ground into an international market must know and follow the local customs and etiquette of each country. The global business must be able to research and train the employees responsible for interacting with the foreign markets directly in areas such as language, customs and culture. Also, global businesses must be aware and plan for the safety of the workers traveling internationally. Travelers may be subject to security risks with regard to air travel or negotiating in countries hostile to the businesses' home country.

    Legal Compliance

    • Businesses operating in different countries must operate in accordance to the rules and regulations of that country. North Carolina State suggests preparing and planning for the possibility of engaging with the regulatory authorities in each country where the business operates to potentially influence regulations and policies.

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