International Risk Factors in Business

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A business expanding its horizons internationally must consider the peculiarities relative to foreign nations. Risk factors involved may be reasons for not conducting business internationally, or risks may be so few that likely advantages will result.


International risk factors involve those affecting the company and the individual worker. A study cited by "Occupational and Environmental Medicine" showed that international business travelers experience more stress than employees not traveling internationally. Additionally, companies must consider the financial implications of conducting business in politically unstable regions.


Cases of a foreign host country overtaking a subsidiary set up in the country have deterred some companies from expanding internationally. Some details worth considering relative to a foreign country's business climate include the attitude of consumers in the country, government actions, presence of war, corruption, and bureaucracy.



Publications detailing political risk in various countries will aid a decision regarding international business. The book "International Business Information" cites the "Political Risk Yearbook," the "International Country Risk Guide," and "Country Forecasts" as examples of such resources (see the Resource section of this article).