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12 February, 22:29

Describe at least three risks your company might face if it participates in global trade.

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Answers (2)
  1. 13 February, 00:32
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    Exchange rates, government policies, and shipping are three risks your company may face if it participates in global trade.
  2. 13 February, 00:56
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    Political, currency and regulatory risks.

    Explanation:

    Political risk: This risk refers to the political climate of the countries you are working. An unstable government or a new government can generate an environment that is not friendly for companies or it can decide, for example, to increase tarrifs.

    Currency risk: When participating in global trade, you have the risk of changes in the currency of another country which can affect your profits.

    Regulatory risk: This risk is about changes in laws that will affect your business. For example, a new law can increase the cost of your operation in a country because of new requirements.
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