International Business Question 2022

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INTERNATIONAL BUSINESS
Department:
Institute:
Dated

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Table of Contents
QUESTION 1............................................................................................................................3
What are the risks of International expansion for Subway? Mention two policies/factors
and its respective impacts.....................................................................................................................3
QUESTION 2 What are the risks & advantages for Ford Motor Company in a non-
equity joint venture engagement?........................................................................................................4
Works Cited.........................................................................................................................7

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QUESTION 1
What are the risks of International expansion for Subway? Mention two policies/factors
and their respective impacts.
Expanding internationally is a significant business approach for beverage and food
companies. Overseas business opportunities are growing and there is a thirst for the demand for
foreign goods in the domestic market. However, such foreign investment comes with certain risk
factors that every company including Subway must face. Good risk management practices are
essential in such cases.
Subway while expanding may consider licensing a foreign producer with their brand
name to produce the specific item or franchising their operation or operating a joint venture with
a foreign company. No matter what step it takes, risks and involvement increases as a large
degree of control and ownership is developed (McLennan, 2019).
Legal Issues – once such risk that may be faced by Subway is the legal issue in the
region. Food and beverage items in Subway must comply with the local laws and regulatory
authority of the region. Various laws are involved in this process, like construction permits,
environmental rules and regulations, safety & health permits, operational permits, quality grade
laws of ingredients used and business insurance. For example, if Subway were to expand their
business in the Middle East they would need to concentrate on laws involving the use of halal
meat in their products (Pakistan, 2012).
Political Risks – a country’s political situation and economic stability is a very important
factor that revolves around foreign investments. The political scenario may directly affect the
supply chain of the company. It may affect the customer relationship and the production and
purchasing processes of the organization. In this case, Subway would face great difficulty in