Answer: Political risks eg High taxes
Economic risks eg fluctuation of exchange in currency.
Please see below for further explanation.
Explanation:
Internationalization strategy is the plan by an organization to expand beyond the domestic market to become globally visible in another country or countries market.
The risks associated Associated when a company, better generation tries to expand globally include
1.)Political risks:Political risk occurs when target countries policies change or fluctuates in such a way to negatively affect a business.
Some of the political risks include
---Instability in foreign country's governments due to corruption
---Government regulations eg High taxation, High tariff quotas
-----Trade barriers etc.
2.Economic Risks here refers to the conditions in the foreign nation's economy that affect a company's financial gains.
Some of the Economic risk include
-fluctuations in the value of currencies exchange.
-Inflation
-Quality of basic infrastructure in terms of electricity, transportation, accessible to water etc as the case may be.
--Labor and differences in wages.
