Risk & Strategies In International Business

Front 1

Risk-

Back 1

A situation that presents the chance of a loss due to probabilities unknown.

Front 2

Economic risk-

Back 2

A risk which results in the decline of a company's economic value from currency movements, which causes a loss in competitive strength.

Front 3

Exchange rate risk-

Back 3

A risk in which the exchange rates of either of the two countries will fluctuate.

Front 4

Credit/sale risk-

Back 4

A risk associated with the sale and accompanying transactions between two foreign markets.

Front 5

High dependency risk-

Back 5

Occurs when a country depends too greatly on imports from one single country or when a country depends too greatly on exporting a very large number of exports to one single country.

Front 6

Political risk-

Back 6

A risk of politically motivated interference of a foreign government.

Front 7

Legal risk-

Back 7

A risk related to the influence of a defect in the documentation on cash flow or dept service.

Front 8

Purchasing power-

Back 8

Also called buying power; the value of money measured by the quality and quantity of products and services the money can buy.

Front 9

GDP-

Back 9

Dross Domestic Product; total market value of all goods and services which are produced within a country during a given period.

Front 10

Foreign debt-

Back 10

The money a country owes another country.

Front 11

Franchise-

Back 11

A licensed property, trademark or concept to another entity by a business owner.

Front 12

Strategic alliance-

Back 12

Agreements between companies or partners to reach objectives of a common interest.

Front 13

Joint venture-

Back 13

A contractual agreement combining two businesses to execute a certain business undertaking.