Asemi-conductor company has established a plant overseas in south africa where the power grid is somewhat unreliable. the plant has a continuous manufacturing process. of the two main risks of international strategy, which is most relevant to the circumstances of the semi-conductor company? a. economic risks b. political risks c. lack of natural resources

The answer is "economic risks".

Economic risk is the possibility that macroeconomic conditions like trade rates, government direction, or political security will influence a venture, typically one in a remote nation. Beside the business hazard related with making the plant profitable, the semi-conductor company is open to economic risk.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Government ownership and control of resources