Risk

Factors to Consider in Analyzing Risk

1. Companies and their managers differ in their perceptions of what is risky
2. One company's risk may be another's opportunity
3. Companies may reduce their risks by means other than avoiding locations
4. There are trade-offs among risks

Categories of Risk Assessment

 Political Risk
-analyzing past patterns
-analyzing opinions
-examining social and economic conditions

 Foreign Exchange Risk

 Competitive Risk
—Four competitive factors to be considered in choice location
1. Making operations compatible
2. Geographic Diversification
3. Following competitors or customers
4. Heading off Competitors