Deliverable Length: 800-1000 Words Plus Completed Table Deta

Deliverable Length8001000 Words Plus Completed Tabledetailsweekly

As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the risks and weigh their relative importance against the rate of return you foresee. You also need to put a plan in place to overcome it. Assume that your business is visible and an important member of the community.

Would the government encourage a decision to expand? How would it affect the reputation of the business? Here is what the list looks like. Your assignment is to fill in the table. Risk Importer Exporter L/M/S How to Overcome It Economic conditions Fluctuations in industry Competition Technological change Change in preferences Costs and expenses Regulations Expropriation Interest rates Government monetary policy Government fiscal policy Internal and external wars Difference in culture and religion Ownership of factories and property Human resource restrictions Intellectual property Discrimination Red tape and corruption Blockage of funds or capital accounts Change in government Comment on whether the U.S. government would support a business owner's decision to expand internationally or import in light of the balance of payments and how the move internationally may affect the business's reputation as a local small-business owner.

Paper For Above instruction

In the increasingly globalized economy, small and medium-sized enterprises (SMEs) face a myriad of risks when considering international expansion or import activities. Making informed decisions requires a comprehensive risk assessment, prioritizing each risk’s severity and likelihood, and developing strategic plans to mitigate potential challenges. This paper explores the various risks involved in international business decisions, presents a structured approach to evaluate these risks, and discusses governmental influences and implications on reputation and community standing.

Risk Assessment and Mitigation Strategies

Among the pressing risks faced by businesses contemplating international ventures are fluctuating economic conditions, regulatory environments, technological changes, and cultural differences. These factors can influence both the feasibility and profitability of international expansion. To systematically evaluate these risks, constructing a detailed table allows business owners to weigh each risk’s importance (Low, Medium, or Strong) and determine appropriate countermeasures. Here, we analyze key risk categories:

• Economic Conditions: Economic fluctuations can significantly impact demand and supply chains. Exporters may be more sensitive to currency volatility and market downturns, which could diminish margins (Cavusgil et al., 2014). To mitigate this, businesses should implement hedging strategies and diversify markets. Importers might face fluctuations in currency exchange rates affecting costs. Hedging contracts and fixed-price agreements can limit exposure (Hill, 2019).
• Technological Change: Rapid technological advancements can render products or processes obsolete. Both importers and exporters need to stay ahead by investing in innovation and continuous improvement. Collaboration with technology providers and maintaining flexible operations help adapt swiftly (Czinkota & Ronkainen, 2013).
• Cultural and Religious Differences: Divergent cultural values and religions influence consumer behavior and workforce management. Failure to respect cultural sensitivities can harm brand reputation (Hofstede, 2011). Cultural training, localization strategies, and hiring local experts are effective mitigators.

Governmental Influence and Community Reputational Impact

The role of government policies plays a critical role in shaping international business strategies. The U.S. government generally supports businesses expanding abroad through various policies, including trade agreements, export assistance programs, and diplomatic initiatives. However, support depends on the strategic importance of the industry and adherence to legal and ethical standards (U.S. Department of Commerce, 2020). Conversely, government policies can restrict imports or exports through tariffs, sanctions, or bureaucratic hurdles, influencing a company’s decision to expand.

From a community perspective, a small business's reputation depends heavily on transparency, social responsibility, and adherence to local norms. International activities, if perceived negatively, could harm community trust especially if the company's operations conflict with local cultural values or lead to accusations of tax evasion, environmental harm, or labor exploitation (Meyer, 2014). Conversely, international engagement can enhance reputation if aligned with ethical standards, contributing positively to local employment and economic development.

Conclusion

Deciding to expand or import internationally involves complex risk assessments and strategic planning. A thorough evaluation of risks using a structured table highlights areas requiring mitigation, ensuring informed decision-making. Government policies, both supportive and restrictive, significantly influence international business prospects. Moreover, maintaining a positive reputation within the local community depends on ethical practices and effective communication. Ultimately, with well-planned risk management and stakeholder engagement, small businesses can leverage international opportunities for growth while safeguarding their community standing.

References

• Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International Business. Pearson Australia.
• Hill, C. W. L. (2019). International Business: Competing in the Global Marketplace. McGraw-Hill Education.
• Czinkota, M. R., & Ronkainen, I. A. (2013). International Marketing. Cengage Learning.
• Hofstede, G. (2011). Cultures and organizations: Software of the mind. McGraw-Hill.
• Meyer, K. E. (2014). Perspectives for International Business and Management in the 21st Century. Journal of International Business Studies, 45(1), 106-118.
• U.S. Department of Commerce. (2020). Export Assistance and International Trade Support. Washington, D.C.: U.S. Government Printing Office.
• Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International Business. Pearson Australia.
• Hill, C. W. L. (2019). International Business: Competing in the Global Marketplace. McGraw-Hill Education.
• Czinkota, M. R., & Ronkainen, I. A. (2013). International Marketing. Cengage Learning.
• Hofstede, G. (2011). Cultures and organizations: Software of the mind. McGraw-Hill.