Export can promote sales and increase revenue and market development. Product sales to multiple markets and accelerate the company 's business diversification. At the same time, it may increase the cost of additional promotional products, and the import-export government for import and export tariff control and restrictions, as well as complex export licensing documents and uncertain financial risks (Brentwood, 2016).
Export can promote sales volume, increase revenue and market development , and accelerate the diversification of company business . At the same time , it may increase the cost of additional promotional products , result in control …show more content…
The political system influences economic policy. Investors may be threatened suddenly. Differences Cultural between countries may diverge. The product should be suitable for local needs. And investors need to spend more money to establish a good business relationships in order to sell more products and get more profits. (Buzzle, 2016).
(c) Evaluate Baskin 's investment in two places
This paper evaluates the potential risks of Baskin 's investment in two countries and analyzes the impact of two regions on both political risk and financial risk.
1. Financial and Political Risk
Political risk refers to changes in the political environment of the host country, leading to changes in the investment environment. National risk involves a framework of economic, legal and social relations, which are public institutions and policies created by the government. Foreign investors ' investment activities can cause losses due to the risks and environmental uncertainties associated with host politics, such as violent conflicts, unrest or network attacks (Özgü and U. İ. S. Ü. , 2014). If the political environment is not conducive to external investors, then the country may not be a good candidate for …show more content…
For example, an entry barriers to maritime transport services are relatively high, nationality and residence impose conditions on registered ships and shares and on board members. This may increase the costs of company 's transportation.
Although the two countries have certain advantages, but the investment in these two places have potential risks. These risks include restrictions on government investment in national government policies, such as mergers and acquisitions, transportation issues and tax rates. The financial environment is affected by the uncertainty of political stability, and labor costs are affected by supply and demand as well as economic uncertainty. These factors will affect Baskin 's investment.
There are some advice for Baskin plc investment in Canada and Estonia.
(1)signing of concession agreements, investment insurance and project guarantees, and host government negotiations. Such as capital remittances, tax rates and import and export, in host country markets. Companies need to sign investment insurance and guarantee projects. Political risk transfer to other institutions. When the risk and economic loss to the investor, the insurance companies pay insurance compensation according to the contracts in the face of investor’s risk and economic