BUS-207 Lecture Notes - Lecture 2: Strategic Management, Swot Analysis, Winning Moves
Document Summary
It is clear that smart managers try to determine and manage the risks associated with global markets. In addition to financial risks, the managers are concerned about country risks, including: Political and economic risks: the key to successful expansion is to carefully assess the business climate of the countries under consideration. This includes understanding both political and economic risks for entry into markets. Many countries, especially emerging democracies and lesser-developed countries, may have both types of risk associated with them. Currency risks: an organization needs to analyze currency risks to determine the impact on the financial risks, also known as profits, associated with fluctuations in exchange rates. Doing business in a number of countries requires an organization"s management to monitor the exchange rates. This adds complexity to the business, and new skills and competencies are required to analyze currency risks.
