Managing an international company takes an extreme amount of research, knowledge, and patience to be successful. Deciding to go into business in a country is not an easy decision, not only does the management team need to know how to manage the foreign currency exchange, but what factors could affect the rate to fluctuate. Some of those factors that would affect a country’s risk would be economic, political and financial system risk. Economic risk is how the country is able to pay back debt. A country with a strong economy should be in a stable financial situation. Political risk is dependent on how political decisions are made within the country. Financial system risk can be affected by both the economic and political risks (Perry, n.d.).
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Canada has seen a slightly increase in the GDP growth over Japan, but not significant. The growth in the economy will be affected in 2016 by the wildfires in Fort McMurray, exports, and more job losses than new positions (Kirby, 2016). There has been a decrease in Canada’s exports, mainly to the United States. Canada is currently experiencing a housing boom, which could have an effect on the economy. Some experts feel that it could end in a recession, similar to the U.S. a few years ago. Home buyers are having to save money for the down payment and with interest rates rising, the cost of owning a house is increasing and leaving less money for the economy. However, Canada has stricter lending regulations in place, there are not a significant number of subprime mortgages (Schecter, 2016). The Canadian dollar is slowly starting to appreciate in value (Canadian dollar rises, …show more content…
Kenya has a high economic and financial risk and very high in political risk. Corruption runs very high in Kenya and it not limited to government officials. Even though Kenya is growing, the corruption is hindering any forward movement for the country. For example, a company in India was awarded a contract to produce laptops to all of the schoolchildren. It was later discovered, the company does not manufacture the laptops (Wrong, 2014). Even though the country has seen an increase in exporting, security and safety are still a large issue in Kenya (Guest Post,
Canada has seen a slightly increase in the GDP growth over Japan, but not significant. The growth in the economy will be affected in 2016 by the wildfires in Fort McMurray, exports, and more job losses than new positions (Kirby, 2016). There has been a decrease in Canada’s exports, mainly to the United States. Canada is currently experiencing a housing boom, which could have an effect on the economy. Some experts feel that it could end in a recession, similar to the U.S. a few years ago. Home buyers are having to save money for the down payment and with interest rates rising, the cost of owning a house is increasing and leaving less money for the economy. However, Canada has stricter lending regulations in place, there are not a significant number of subprime mortgages (Schecter, 2016). The Canadian dollar is slowly starting to appreciate in value (Canadian dollar rises, …show more content…
Kenya has a high economic and financial risk and very high in political risk. Corruption runs very high in Kenya and it not limited to government officials. Even though Kenya is growing, the corruption is hindering any forward movement for the country. For example, a company in India was awarded a contract to produce laptops to all of the schoolchildren. It was later discovered, the company does not manufacture the laptops (Wrong, 2014). Even though the country has seen an increase in exporting, security and safety are still a large issue in Kenya (Guest Post,