APPE - Risky Business & Economics of Immigration

risky business

the probability of loss inherent in an organization’s operations and environment (such as competition and adverse economic conditions) that may impair its ability to provide returns on investment

business risk

_____ plus financial risk arising from use of debt (borrowed capital and/or trade credit) equal total corporate risk

financial risk

business risk plus _____ arising from use of debt (borrowed capital and/or trade credit) equal total corporate risk

total corporate risk

business risk plus financial risk arising from use of debt (borrowed capital and/or trade credit) equal ______

PESTEL analysis

what most businesses do to identify risks

political

P in pestel

economic

E in pestel

socio-cultural

S in pestel

technological

T in pestel

environmental

E in pestel

legal

L in pestel

ways to manage risk

1. Control, mitigate, or reduce the risk

2. Avoid the risk

3. Transfer the risk

4. Accept the risk

risk management plan

• procedures to follow once the risk arises

• estimate the impact that each risk could have on your business

• qualified staff who can steer the company through the situation

• ways to minimize and avoid predictable risks

risk reducing institutions

• government agencies

• ownership sharing

• safety movements

• insurance / re-insurance

• government regulation of insurance

trade-off

• often expressed as an opportunity cost, which is the most preferred possible alternative

• it involves a sacrifice that must be made to get a certain product or experience

social insurance

protection of the individual against economic hazards (such as unemployment, old age, or disability) in which the government participates or enforces the participation of employers and affected individuals

forced-push model

• factors that drive people to leave home

• occur within home states

• negative aspects of the sending states

• ex: oppressive laws, heavy taxation, unattractive climate, uncongenial social

voluntary-pull model

• factors that attract migrants to new location

• occur in the receiving states

• positive aspects of the receiving states

• ex: better job opportunities, liberal laws, better financial markets, accommodating social surrounding, social benefits, better education

brain drain

loss of trained and educated individuals

factors influencing choice of destination country of a migrant

• job opportunities

• safety

• better lifestyle

• distance from home country

• existing network of immigrants

Africa

has the highest number of displaced people in the country