MANAGEMENT

Detailed explanation-1: -True. It is usually a huge risk for a co. to employ locals when it expands in the international market.

Detailed explanation-2: -These risks can range from extreme currency shifts, to political instability, to war, to trade disputes, to taxation changes, to extreme weather. Regulatory & Legislative Risk. Every go global expansion means implementing a business model in a new place.

Detailed explanation-3: -Competing in international markets involves important opportunities and daunting threats. The opportunities include access to new customers, lowering costs, and diversification of business risk. The threats include political risk, economic risk, and cultural risk.

Detailed explanation-4: -Which of the following is a risk that firms must consider prior to expanding abroad? Management may not understand the foreign country’s business culture.