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==Summary==
There are many forms of risk associated with business and more so with international business because of the added pressure caused by sovereign governments, geography and culture.  A successful international business manager does not go into business with a blind eye.  He/she identifies the potential risks, assesses the potential profits, and puts the appropriate risk mitigation tools into place.  There are a variety of types of risk associated with international transactions, political, economic and commercial risk, all of which may render a buyer or seller incapable of conducting business (getting paid or receiving shipment).  You must understand the complex interactions of the various kinds of risk.  A simple way to differentiate commercial and country-risk is provided below:
There are many forms of risk associated with business and more so with international business because of the added pressure caused by sovereign governments, geography and culture.  A successful international business manager does not go into business with a blind eye.  He/she identifies the potential risks, assesses the potential profits, and puts the appropriate risk mitigation tools into place.  There are a variety of types of risk associated with international transactions, political, economic and commercial risk, all of which may render a buyer or seller incapable of conducting business (getting paid or receiving shipment).  You must understand the complex interactions of the various kinds of risk.  A simple way to differentiate commercial and country-risk is provided below:


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<div style="float:right;">[[Introduction to Political and Economic Risk/Cultural Risks|Prev]] | [[Introduction to Political and Economic Risk/Resources|Next]]
<div style="float:right;">[[Introduction to Political and Economic Risk/Cultural Risks|Prev]] | [[Introduction to Political and Economic Risk/Resources|Next]]


 
[[Category:International business]]
[[Category:International Business]]

Latest revision as of 05:56, 27 May 2009

There are many forms of risk associated with business and more so with international business because of the added pressure caused by sovereign governments, geography and culture. A successful international business manager does not go into business with a blind eye. He/she identifies the potential risks, assesses the potential profits, and puts the appropriate risk mitigation tools into place. There are a variety of types of risk associated with international transactions, political, economic and commercial risk, all of which may render a buyer or seller incapable of conducting business (getting paid or receiving shipment). You must understand the complex interactions of the various kinds of risk. A simple way to differentiate commercial and country-risk is provided below:

  • country risk = political risk + economic risk
  • commercial risk = business transaction risk