Global Business Plan

Global Business Plan

A global business plan determines how a business will deploy and manage its operations around the world. Often it's used by existing companies as a plan for expanding rather than by new businesses, it allows big companies to expand their "know how" on Products or Services into new markets once they have reached local or regional success, this Global Business Plan prepares a business to change its operations internally. It's also used externally for soliciting investment capital that will be used for expansion, some of the benefits of GBP are seen as since going global is a difficult and risky part of expansion, going through the process of creating a global business plan is essential for understanding what types of challenges the business will face. It often brings up questions executives hadn't known to ask.

CRA (Country Risk Assessment)

A collection of risks associated with investing in a foreign country. These risks include political risk, exchange rate risk, economic risk, sovereign risk and transfer risk, which is the risk of capital being locked up or frozen by government action. Country risk varies from one country to the next. Some countries have high enough risk to discourage much foreign investment.

Country risk can reduce the expected return on an investment and must be taken into consideration whenever investing abroad. Some country risk does not have an effective hedge. Other risk, such as exchange rate risk, can be protected against with a marginal loss of profit potential.

The United States is generally considered the benchmark for low country risk and most nations can have their risk measured as compared to the U.S. Country risk is higher with longer term investments and direct investments, which are investments not made through a regulated market

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