The document outlines the four main risks of international business: 1) Cross-cultural risk arises from cultural differences that can lead to miscommunications and suboptimal business strategies. 2) Country risk is related to potential losses caused by changes in foreign governments' policies that affect things like regulations, tariffs, and currency stability. 3) Currency risk is the uncertainty created by fluctuations in foreign exchange rates that can impact the costs and revenues of cross-border transactions. 4) Commercial risk is the possibility of losses from poor strategic decisions regarding things like market entry, product features, or partner selection in foreign markets.

1. The Four Risks of International Business

4. 2. Country Risk