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

Question

Juliette Brennan

Business

23 May, 18:08

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

+2

Answers (1)

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Briggs · 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.