Search icone
Search and publish your papers

The role of uncertainty and risk in the decisions which international business firms make on the internationalisation process

Or download with : a doc exchange

About the author

General public

About the document

Published date
documents in English
case study
2 pages
General public
0 times
Validated by
0 Comment
Rate this document
  1. Introduction
  2. About international business firms
  3. The role of uncertainty and risk in the decisions which international business firms make on the internationalization process
  4. Conclusion

Uncertainty is what drives the business environment. Without uncertainty, there would not be entrepreneurship nor need for firms to develop, explore and evolve. But, with uncertainty comes risk and companies try to maximize their profits while minimizing the underlying risk of their activities. When developing a framework for integrated risk management, Miller (1992) identified three main sources of uncertainty: the general environment (political, fiscal and monetary, macro-economic), the industry (input market, product market, competitive) and the firm itself (operating, liability, R&D, credit, behavioral). Because firms can more easily monitor and manage risk inherent to their internal uncertainty, the external environment is the major concern in the internationalization process. The main sources of uncertainty in the external environment can be detailed following the PESTEL framework: Political (role of governments), Economic (macro-economic factors), Social (cultures and demographics), Technological (innovations), Environmental (?green? issues) and Legal (legislative constraints). These factors are highly influential and shape international markets in various ways and models to quantitatively assess markets and countries attractiveness based on their related uncertainty have emerged.

Similar documents you may be interested in reading.

International human resources management: A comparison between the USA and China

 Business & market   |  Human resources   |  Case study   |  01/16/2009   |   .doc   |   6 pages

International business strategy: The Japanese Car Industry

 Business & market   |  Business strategy   |  Market study   |  09/29/2010   |   .doc   |   24 pages

Top sold for business strategy

International Business Strategy - Acer, Inc.: Taiwan's rampaging dragon

 Business & market   |  Business strategy   |  Case study   |  09/29/2010   |   .doc   |   8 pages

Nike's outsourcing strategy

 Business & market   |  Business strategy   |  Case study   |  01/27/2011   |   .doc   |   5 pages