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Essay / Research Paper Abstract
A 4 page paper that discusses the kinds of risks faced by multinational companies conducting business in a different environment, i.e., a foreign country. Bibliography lists 5 sources.
Page Count:
4 pages (~225 words per page)
File: MM12_PGenmul.rtf
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Unformatted sample text from the term paper:
properly! Environmental risk refers to a numerous and diverse forms of risk any corporation faces in the conduct of their business. For instance, there is environmental that is directly
related to how the operations of the business affect the environment. The Environmental Protection Agency has rules and regulations that companies must follow to protect the environment. All industrialized nations
have laws and regulations to protect the natural environment. Just one example of this type of environmental risk can be gained from the marine industry. Marinas and boatyards face
the challenge of environmental risks that arise from asbestos, lead paint, fuel spills and runoff from work areas. Any accident involving these dangers can directly affect the financial well-being of
the facility. Accidents can also affect the waters and air around these facilities, as well (Britt, 1998). This essay will address another kind of environmental risks that corporations are facing
more often in this global marketplace. These risks do not have to do with the environment, i.e, water, air, plants, etc. These are the risks that are in the environmental
culture and specifically deal with environmental uncertainties. Numerous experts (Howell and Chaddick 1994; Harvey 1993) have written the additional environmental risks a firm faces when they are involved in
international business. This venture is inherently more risky than operating only in their home country. Global firms find themselves experiencing more costs as a result of the myriad of challenges
in their new environment. Imagine having to take purchase an insurance policy in case the foreign government decides the company is a property of the nation. In many countries, companies
must protect themselves against things like terrorism, kidnapping or sabotage. Government actions can affect the performance of the company, such as expropriation of firm assets or enacting legislation that would
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