Arguably, globalization has presented tremendous opportunities in the business field. Technological advancement, specifically with information and communication eased by the internet, it is easy to expand, as well as target markets in the overseas. Certainly, the risk of moving business overseas is different as compared to moving it to a different state. There are different reasons why the risk if different in such perspective. One of the reasons is the logistics and cost of uprooting a business from one nation to another is tedious. Moreover, the rules and regulation regarding taxation and running of the business changes, exposing the business oversees to various adjustments (Goddard & Ajami, 2006).. Labor issues will also great difference in risk; this is because of employees are to be transfers to the oversee business, then they will require a lot of legal documents.
Undeniably, countries experience many cultural and social differences; hence, moving business to overseas will need loads of adjustments, to fit the new market place. Currency risk also creates the differences in moving a business overseas. With global financial crisis, the issues of currency fluctuation create instability in the business. In fact, it is difficult to rely on foreign currencies because it can affect the business drastically. In addition, the marketing strategies create differences in risk occurrence. For example, a marketing strategy that worked in one country might not work in another country. All strategies to be used in business overseas should be shaped to fit the new perspectives (Boone & Kurtz, 2011).
In the business world, there are risks that can be found in a different state in United States that cannot be found in the overseas. The risk that may exist is the issues of taxation. The change of business from one state to another in United States requires the determination of tax nexus. This is not presented in an overseas situation, since the taxation rules differ completely (Goddard & Ajami, 2006). Moreover, to the determination of the sales tax is not well defines; hence, it is determined by each state. Generally, the variation of risks in moving a business overseas and from one state to another is cause by policies, laws, rules, labor, currency, as well as labor.
Boone, L. & Kurtz, D. (2011). Contemporary Business. London: Springer
Goddard, J. & Ajami, R. (2006). International Business: Theory and Practice. New York: Wiley
