What is one potential risk of international business?

Choosing currency fluctuation as a potential risk of international business is accurate because fluctuations in currency values can significantly impact profits, costs, and prices in foreign markets. For example, if a company earns revenue in a foreign currency that later depreciates against its home currency, the company may receive less value when converting profits back to its home currency. This unpredictability can also affect pricing strategies and competitiveness in international markets.

In contrast, guaranteed market growth is unrealistic in the context of international business, as market conditions can vary widely and are subject to many economic factors. Similarly, homogeneous cultural attitudes do not exist; cultures are diverse, and businesses must adapt to different consumer behaviors and preferences. Lastly, stable political conditions cannot be guaranteed; instability can arise due to numerous factors such as changes in government, policies, or social unrest, which can complicate international operations. Therefore, currency fluctuation is a significant risk that international businesses must navigate.