A semi-conductor company has established a plant overseas in south africa where the power grid is somewhat unreliable. the plant has a continuous manufacturing process. of the two main risks of international strategy, which is most relevant to the circumstances of the semi-conductor company?

a. economic risks

b. political risks

c. lack of natural resources

Question

Business

Myla Martinez

11 December, 02:25

A semi-conductor company has established a plant overseas in south africa where the power grid is somewhat unreliable. the plant has a continuous manufacturing process. of the two main risks of international strategy, which is most relevant to the circumstances of the semi-conductor company?

a. economic risks

b. political risks

c. lack of natural resources

+4

Answers (1)

Know the Answer?

Maggie Benton · Answer 1

The answer is " economic risks".

Economic risk is the possibility that macroeconomic conditions like trade rates, government direction, or political security will influence a venture, typically one in a remote nation. Beside the business hazard related with making the plant profitable, the semi-conductor company is open to economic risk.