Part1: Please answer the question in a min of 250 words.
- Watch the video titled, â€œCosts and revenue opportunities associated with risk in the technology industryâ€, (2 min 38 s) located below. You may also view the video at http://youtu.be/6la2BKzvppQ. Your textbook also discusses the threat of economic risk, financial risk, or political risk for organizations engaged in global trade. Select one (1) of these risks and discuss the scope of the threat. Next, formulate a solution that companies can utilize to neutralize the threat. Provide support for your response.
- Suggest which research data (primary or secondary) you would select to support the solution you proposed previously. Next, compare and contrast the advantages and disadvantages related to your data selection (primary or secondary). Using the research data you selected, provide support for whether you believe your solution would still work to help neutralize the threat.
Part 2: Please comment and give your opinion on the student post below. Please answer the the question in a min of 100 words.
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Political risks are risks that affect an investmentâ€™s returns because of the political changes or the instability in a country. These changes can stem from the government, foreign policymakers, legislative bodies or military control. Although, there are limited case studies when discussing an individual nation the political risks are hard to measure. Political risks may be insured against other government bodies of international agencies. Political risks outcome can bring down the investment returns or remove the ability to withdraw capital from an investment. Some type of political risks that can affect an individual business, industries and the economy would include spending, taxes, currency valuation, regulation labor laws (minimum wage, and environmental regulations) and trade tariffs. On the other hand, regulations can be set at all levels of government, including state and local, federal, and other countries. It is imperative for marketing manager understands the political factors of a country to make informed decisions. Political risks insurance (provides financial protection to investors) can be purchased by companies that operate internationally to remove certain political risks. In doing this it will allow investors and management to focus on the business fundamentals while knowing losses from political risks or limited or avoided (which would include the act to convert currency, acts of terrorism and war).