1) International business risk is a wide ranging concept. Examples: - for the exporter it can mean currency risk on export transactions, or the imposition of tariffs, and quotas; - for the direct investment, merger or an acquisition it can mean losses or reduced profits due to macroeconomic mismanagement, exchange controls, expropriation or other types of government intervention; - for the lender it can mean payment delays and default; - for the portfolio investor it can mean market volatility, currency fluctuations, transaction costs such as brokerage fees, stamp duties, taxation and other regulations. The possibilities are limitless. 2) The international economic and financial consultant should be aware of what the risks are and how they can be assessed and managed. Examples: - in a foreign acquisition, the cost of possible losses due to government intervention or the volatility of cash flows caused by currency fluctuations should be factored into the evaluation process; - legal counseling is most effective when it anticipates potential conflicts and and advises on how they can be avoided or their effects minimized.