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b. Describe the risks that a potential multinational corporation may no longer face as it ceases to be a domestic corporation.
c. Discuss total and unique risks for a potential multinational corporation.

1 Answer

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Answer:

explanations below

Explanation:

Discuss possible reasons a corporation may want to grow its international business.

Different businesses at some point decide to go international because they intend to generate more revenue for themselves, compete for new sales opportunities, diversity into other business streams, and recruit new talents.  

Describe the risks that a potential multinational corporation may no longer face as it ceases to be a domestic corporation.

Businesses operating in one country may face the risk of getting blown away by the political and economic nature of the country. When they explore other overseas markets, they would be immune to instant business collapse from political and economic issues [eg, localized recessions] a single country could bring to them.  

Discuss total and unique risks for a potential multinational corporation.

Corporations may face currency risks. They are likely going to pay wages and taxes in the local currency of the various nations they operate in. if the currency of their base country loses value at any point, which may likely increase their costs in oversea nations.  

Businesses that produce goods in one country and sell in another through retailers may face energy risks. This could happen when the prices of oil increase which consequently causes increase in cost of transportation of those goods.

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Jeanie Wolf
15.5k 3 10 26
answered 7 months ago