Risk of uncertainty still felt by the economic actors (businessman, investor, government) and the arrival of this risk is not only caused by problems in the country. Sometimes a country's economic conditions were fine (stable) suddenly shaken because of economic problems, political, social from other countries. Where, problems are popping up in a country (overseas) was able to be felt also by other countries (in the country), and then it would be a risk to the existence of your business. So, then raised some questions as follows:
- Why risk it happen?
- What causes this risk?
- How to know the arrival of these risks?
- How to measure these risks?
- And is there any way to minimize these risks?
- Understand that every business must be built within a country.
- Understand that the importance of the cooperation relations between countries.
- Understand that relations between countries affect the business world.
- Understand that it is important to know which countries are mutually connected.
- Understand that it is important to be able to measure the level of inter-state relations because it can minimize the risk of uncertainty.
Yes, every business must have been established or will be built in an area and under the government of a country, there is not a business built on a no-man or a lost world. That is, a business that you established or newcomers who will build his business, must have previously been in compliance with the government regulations as well as land certificate, building permit, permit to establish a business, bank financing, taxation and others. Business means you are under shade and protected by law of a country. Meanwhile, from the state government, the obligation to provide protection (security business), provide infrastructure and facilities (electricity, water, roads, ports, airports, etc.), providing regulations for the development of business (legal employment, bank interest, region special economic and tax).
Every country needs to have and must establish cooperative relations with other countries.
It is very true, because there are several aspects that need to be built so that a country can progress and evolve, just like education, security, economy, international relations and so forth. Where, some aspects are inter-related, related to this article then I mean the relations between countries in influencing the economic conditions of a country, especially those on the condition of your business, because you are in the business in the economic system of a country. One of inter-state relations is expressed through forms of cooperation contracts whether it's an agreement between two countries (bilateral relations) or (multilateral relations) with the establishment of an organization such as APEC, ASEAN, OPEC, EU, WTO, ILO, FAO, IMF, UNDP, IBRD and others. Some forms of this organization has a task which, if described in general is to control and evaluate, of course, to achieve common progress. From this it can be explained that it was the need for a country to establish cooperative relations with other countries, rather than as a country not excluded or isolated.
Relations between countries affect the world of business
The problem is though relations and cooperation is woven to achieve common progress, but there are some countries that actually feels aggrieved thereby causing a state actually had to get out of the relationship of cooperation, as in the case Brexit, trade agreement between the EU and Canada, and slipping of predictions by some quarters for the Japanese economy.
- For example, I will describe two things that the debate between the pros and cons of this Brexit case (quoted from some official news website):
- Among pro Brexit judging by leaving the EU means that the UK can independently take over the regulation of labor, health and safety. Where, it tends to be preferred by British companies. While the counter brexit considers that EU regulation is positive will reduce non-tariff barriers and profitable British businessman. If you are still within the EU, then the UK could fight for better regulation.
- Among pro Brexit said Britain had very little effect in the EU. In fact, if it comes out of the EU, then the UK could take over their own seats in international organizations and position themselves as influential countries in free trade and international cooperation. While the counter Brexit states if the EU remains a member of the British interests in the international arena it can be represented by two members, namely representatives from the UK itself and from the EU.
- Another example is related to the trade agreement between Europe and Canada, where some villagers had refused EU trade cooperation with Canada, for fear of market competition, labor competition, and more. Whereas the agreement the EU will attract considerable profit.
- Another example was recently regarding the condition of the Japanese economy as one of the group of developed countries, which is projected to fall as a result of post-cases affected Brexit and economic turmoil in the United States due to the transition of leadership, where it is apparently never happened.
- Improved and improving economic conditions after the agreement China trade agreement with the United States, making the most of the Asian stock markets are rising, which means that the price of shares of the issuer are also rising.
- There are also several other cases in the past, as well as the 2008 financial crisis because of Suprime mortgage in America, to the impact spread to other countries which may affect the country's banks.
Conclusion
What can we learn here, that the relationship between the state turned out to directly or indirectly influence the world of business in a country. Again, because the business is built in an area of the state, if the country is progressing or developing of an aspect, of course, your business also have the opportunity to grow and progress. Conversely, if the country deteriorates or down views of an aspect, of course risk the possibility of your business to come back and go down well there.
So, then the question arises:
- How do I know that a country has a relationship with one or a number of other countries?
- How to measure the effect or level of relations between the countries?
Thank’s
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