Cultural and Economic Risks in Business

What is a cultural difference in business?

• A change in money value

• Differences in language, customs, and habits

• A problem with laws in another country

What can happen if the economy changes in another country?

• Prices of products may go up or down

• Business laws stay the same

• No change in sales

What is a political risk?

• A problem with shipping products

• A risk from changes in government rules or laws

• A problem with customer service

What can happen with money exchange in international business?

• Money is always the same in every country

• The value of money may change in different countries

• Products are cheaper when you exchange money

What is a supply chain problem?

• A problem with selling a product in another country

• A delay in shipping, taxes, or import/export rules

• A problem with product quality

What should a company do when facing cultural differences?

• Ignore the differences

• Learn and adapt to local customs and language

• Stay the same as in their home country

What is a risk when a business faces economic changes?

• No effect on the business

• Prices may go up or down, affecting sales

• Customers will always buy the product

Why do businesses face political risks?

• Because they sell products in many countries

• Because the government may change rules or laws

• Because they do not advertise well

What happens if there are money exchange issues?

• The business does not need to pay for anything

• The value of money may change and affect the price of products

• Money is not needed in business transactions

How can a business solve supply chain problems?

• Find local suppliers to reduce shipping delays

• Stop selling in foreign markets

• Ignore the problems