Sunday, April 28, 2013

Risk of IB

Did you know that GM supplied both the Allies and the Nazis in World War 2? Command of Opel, a subsidiary of GM, was taken by the Nazis during the war. GM was not able to produce Opels or refuse to supply the Germans. This is a major risk of international business. You never know when the country you are investing in will ultimately become an enemy of your home country. When GM purchased Opel in 1923, it was right after WW1. At that point Germany was devastated and disarmed, they were no risk of every being an enemy of the United States.

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