International business transactions involve risks that are financial, political, and regulatory.

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International business transactions involve different types of risks, including financial, political, and regulatory risks. Financial risks refer to the potential losses due to fluctuations in currency exchange rates, payment defaults, or changes in market conditions. Political risks arise from the policies and actions of governments and include expropriation, nationalization, and environmental regulations. Regulatory risks, on the other hand, stem from the legal and governmental framework of the country in which the transaction occurs and can affect areas such as taxes, labor laws, and intellectual property rights.

International Business Transactions Involve Risks That Are Financial, Political, and Regulatory