Question Details

The Sports Exports Company is considering the establishment 


The Sports Exports Company produces footballs in the U.S. and exports them to the United Kingdom.
It also has an ongoing joint venture with a British firm that produces some sporting goods for a fee.
The Sports Exports Company is considering the establishment of a small subsidiary in the United
Kingdom.
1. Under the current conditions, is the Sports Exports Company subject to country risk?

2. If the firm does decide to develop a small subsidiary in the United Kingdom, will its exposure to
country risk change? If so, how?


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