Types of risks in international business

A classification scheme of risks associated with foreign economic activity is presented. All risks are divided into two groups: dependent on the activities of the enterprise, or internal, and independent of the activities of the enterprise, or external. The fundamental difference between the two is that the enterprise is able to influence the first group of risks, that is, take measures to eliminate the sources of these risks. The enterprise is not in a position to influence the second group of risks, since their onset practically does not depend on its “efforts. Accordingly, different methods must be applied to manage these risks of various origins.