Question

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

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.