For your chosen company, research the company background and international operations. Apply your research and the theories about risk with internationalisation to your chosen company to identify the current factors affecting your business’ international operations. Explain the factors and associated risk, ensure you justify why the risk exists https://www.commbank.com.au/about-us/our-company/international-branches.html The increased prospect of globalization have motivate companies of medium-size and large size to expand its customer population by expanding to international market. In the present context, the discussion of international business context and the associated risks are analysed, taking into reference of Commonwealth Bank, Australia (Turner, 2014). The strategic strength of this company is linked with its brand popularity, assets , strength and diversified business that offer varieties of solutions to its customers. This award winner bank goes international since 2008, and marked its presence through retail banking in New Zealand and Indonesia, Banking investment in China and Vietnam, Banking branches in UK, Singapore, India, Japan, China, and New York. Apart from this, the company also offers international services in B2B form to several locations including Beijing, Hanoi, New Zealand, China, and India. It is important to discuss that international business context is not only about networking to enter into international location and forming strategies to gain competitiveness; but is also linked with risk consideration in overseas location such that continuity of business can be maintained and that the total asset value of company should not be in a risk. The common form of risk that are probable to encounter for banks as well as other commercial companies in combination to overseas projects include country risk, commercial risk, currency risk, and cross-cultural risk (Turner, 2014). The reason that such factors must be carefully analysed is that with understanding to critical information, the company can avoid financial loss or product failure or any other likely situations. In addition to this, with accurate market understanding, the company can also manage the competitiveness in market and manage the corporate social responsibilities. (Turner, 2014) Notably, the commonwealth bank has accurately identified such risk tendencies, which can be reviewed with fact that they entered into selective market with selective product line. The major risk is the country risk which is linked with government interference and protection. For instance, in China, the customer protection framework is poor and that financial liabilities in terms of consumer protection is minimal, because of which Commonwealth tends to expand its branches for financial investment in businesses. Likewise, another concern is linked with legal safeguards, economic failure due to nation’s GDP, and adversities with reference to social and political unrest or instability. Particularly, in Asian countries, the GDP is stable only for India, Singapore, and China, whereas social and political interference are more in Pakistan, Nepal, Sri Lank, and Bangladesh, due to which the company have limited product launches. These terms are also included within the scope of currency risk as the foreign taxation, asset valuation, and variation in currency conversation rate also affects the overall business procedure (McNeil, Frey and Embrechts, 2015). Thus, careful evaluation of these terms, in each financial year is mandatory for global companies, in these nations, for avoiding any major loss in finance, which is accurately handled by Commonwealth Bank. Other significant risk is considered with respect to comercial risk such as weak partner of Merger and Acquisition (M&A), timing of entry into market, and competitive intensities. It is reflective with the past M&As activities of Commonwealth Bank that they have association with nationalised banks such that they can make good return of their share values and can also avoid risk of asset loss to market fluctuations (Henningsson and Kettinger, 2016). Lastly, the cross-cultural risk is associated with reference to the local employees, their communication standard, and ways of decision making. For example, commonwealth can only invest in B2B format to minimize the risk, whereas for the investment into the microeconomic of nations like New Zealand, US, Asia, and other European nation will be difficult unless they have more branches and executives working in the host markets. References: Cavusgil, S. (2015). International Business - The new realities. 2nd ed. Melbourne, Vic: Pearson Australia, pp.1-26. McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts, techniques and tools. Princeton university press. Henningsson, S. and Kettinger, W.J., 2016. Understanding Information Systems Integration Deficiencies in Mergers and Acquisitions: A Configurational Perspective. Journal of Management Information Systems, 33(4), pp.942-977. Turner, P., 2014. The global long-term interest rate, financial risks and policy choices in EMEs. [Assessed from http://www.iadb.org/res/centralBanks/publications/cbm77_1166.pdf Dated 24 Mar 2016].