(Chapter 15) International Strategies ~ The last chapter ~

Review 5 Values 

1. Access to new customers
2. Low cost of production
3. Develop new core competency
4. Leaning current core competency
5. Managing corporate risk

Review Risks

• Corporate risk

          - Liabilities and dangers - get more funding to take risk. What happen if revenue is not increasing?

• Financial risk

         - Exchange rate risk

• Country risk

         All local risks such as:
         - Local government
         - Natural disasters

MEMO:

- The country risk is a portrait of the economic and financial situation of a certain country, also showing the political stability and the historic performance in fulfilling its financial obligations.

- The two relevant risks for the Central Bank to set the level of the interest rate in an open economy are the currency and country risks.