Engaging in international business transactions presents multiples risks that companies must carefully navigate:

• The conflicts in laws: U.S courts must define which country’s law is going to be applied in cross-border disputes in contracts so they reduce uncertainty. To prevent this case, the U.S can use Arbitration Clauses including a clear choice of which country’s laws to apply.

• Trading law and sanctions: by violating trade restrictions like export/import laws (ex., U.S OFAC sanctions) can lead to severe fines and legal actions. Tariffs, quotas and customs regulations may affect the cost and the feasibility of conducting certain business operations.

• Cybersecurity risks: data privacy breaches and hacking can increase with cross-border transactions such as the EU’s GDPR which requires certain protocols when handling a customer or employee data across-borders.

• Currency fluctuations: the exchange of currencies needs to be under control and monitored regularly. Banking regulations could also impact transaction costs and profitability as well as the feasibility of certain transactions.