Going global involves engaging in international business activities and carries various risks. The key risks include socio-cultural risks due to differences in beliefs, languages, customs and attitudes across countries; technological risks because standards, quality and uniformity differ domestically versus globally; economic risks such as differences in currencies, regulations and banking/finance systems between countries; and legal/political risks like instability, changing trade policies, corruption and long/complex entry requirements in foreign markets. Managing these risks appropriately is important for companies that choose to expand their operations globally.

1. Understanding The Global RISK of Business
Risk associated with going
GLOBAL

2. Going Global:
Becoming engaged in international
business activities, typically known as “going
global”.

3. Going Global:
 Becoming engaged in international business
activities, typically known as “going global”, is
a process. By definition and for sake of
simplicity it is a series of steps, which when
undertaken correctly can lead your company
towards achieving its international goals. The
process of going global will vary slightly from
company to company and by industry as well.

4. Why going global ?
 To off set sales declines in the domestic market.
 Increase sales and profit.
 Extend product life cycle.
 Lower manufacturing cost.
 To increase competitive position and enhance
reputation.
 Raise quality level.
 To raise capital funds.
 To find strategic partners or venture partners.

5. Risk associated with going
global:
 Social and cultural
 Technological
 Economic
 Legal and political

6. Socio-Cultural :
 Beliefs- values-
views.
 Languages-
philosophies-
practices- traditions.
 Customer’s attitude
and discrimination.
 Ethics and ethical
behavior.
 Customs
 People’s attitude
towards work wealth
and their interest in
investing a new
venture may differ.
Domestic Global

7. Technological:
 Standard differs.
 Uniformity changes.
 Quality differs.
 Standardize.
 Uniformity in
products.
 Consistent in quality.
Domestic Global

8. Economic:
 Single economic system.
 Same currency.
 Same government
regulation.
 Exchange risk
 Currency valuation.
 Government regulation
differs.
 Banking-venture capital.
 Marketing distribution
system.
 Per capita income.
Domestic International

9. Political and legal:
 Long term stability.
 Government trade policy
remain same for longer
period of time
 Subsidies to domestic
industries.
 Corruption
 Entry requirements- long
& time consuming
process
 Trade and Tariff barriers
Domestic Global

10. Thank You…!!!