Aeon

1. Exchange Rate Risk: Investing in foreign markets creates exposure to exchange rate fluctuations. These changes in exchange rates can affect a company’s profits and cash flows if it is not able to cover its foreign currency denominated costs with its foreign currency denominated revenues.

2. Political Risk: Foreign markets bring with them the possibility of political instability, government interference, and policy changes that can adversely affect businesses.

3. Economic Risk: Investors face economic risks related to the prospects of the foreign countries in which they are investing. A company’s prospects can be affected by changing economic conditions in the target country, such as inflation, interest rates, and GDP growth.

4. Regulatory Risk: Investing in foreign markets involves navigating complex regulations which can change. Failure to comply with these regulations could lead to costly fines or other penalties.

5. Currency Risk: Companies investing in foreign markets must take into account the different taxation policies, exchange controls, and currency fluctuations that could affect the value of their investments.

6. Cultural Risk: Investing in foreign markets means doing business in different cultural contexts which could result in unforeseen challenges. Companies must be aware of cultural differences and know how to effectively communicate and collaborate in order to maximize returns.