AEO presents some international operations in which American Eagle can be affected because of changes in foreign currency exchange rates and economic slowdown. In an article by Nicole Sargeant, it is said that “the main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These risks may sometimes make it difficult to maintain constant and reliable revenue” (p.1). Even though the company has the advantage of expanding internationally, the stores where AEO is selling its products, are in risk of decreasing its sales if these countries go into economic and/or political problems, or difficult regulations to trade. Its second threat is when AEO present some competition when
