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Business Risk Analysis | International Market| RWANDA Report

   

Added on  2020-02-17

7 Pages1889 Words224 Views
RISK ASSESSMENT OF INTERNATIONAL BUSINESS

Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3PESTEL Analysis.......................................................................................................................3Risk involved in business operations..........................................................................................4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7

INTRODUCTIONIn this report, the concept focuses on the risk assessment of international business so thatrisk assessment has to be done with the help of PESTEL analysis. C&H Garment is the firm whois about to invest in the RWANDA special economic zone, it offers various incentives likeliberal and simplified economic regulations for establishing the business (Ballestas and et.al.,2015). The business risks that are results of various organizational failure, are also discussed inthis framework. Rwanda is a small land in South Africa where the special economic zone isbusiness in Rwanda SEZ. MAIN BODY PESTEL AnalysisThe risk assessment in establishing a new business in Rwanda special economic zone canbe done on the basis of various factors. The risk % in a business should be minimus so tominimise the chances of risk in the business operations. . The risk can be assessed by carryingout the the PESTEL analysis of Rwanda special economic zone (Nduwayezu and et.al., 2014).The factors are shown below:Political: The political background of Rwanda is quite unstable; they are focusing ongrowing their economy from the last so many years. They are motivated to reduce poverty andpeople resistance from the place. The political factors impact their economy because still theRwanda is considered as the low income nation. The political face of Rwanda is enhanced dueto the foreign exchange through production thus C&H Garment can face huge of risk in thearchitecture development of their business (Moses and Etuk, 2015).Economic: Basically, the economy of Rwanda is stable now and in past decades theireconomy suffered due to civil war and genocide but after introducing the SEZ in Rwanda theeconomic status has witnessed growth of 8 %, their foreign investment is centralized on the tea,coffee, and tourism. The change in exchange rate can increase the risk of economic growth ofC&H garment. Social: Social background of this Rwanda is based on orthodox mentality. Thepopulation of Rwanda is from rural area in which 52% of population is of women. The peopleare living in a traditional way and also 45% of total population is under poverty line so C&H

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