I. Commercial risks

1. Natural risk. They have a subsidiary in Germany that sells medical products to European customers (made in America).

2. Foreign exchange risk, also known as exchange rate risk, refers to the changes in the asset value of investors due to exchange rate changes.

3. Interest rate risk refers to the change of investors' asset value due to the change of exchange rate in a certain period of time.

4. Business risk refers to the risk caused by the change of market conditions and production technology in the process of commodity production and sales.

Two. country risk

1. Sovereign risk.

2. Political risks, including: poor government leadership, conflicts of interest among all social strata, etc.

Means to prevent and control the operational risks of transnational corporations;

1. Risk avoidance. It refers to predicting the possibility of risk in advance, judging the conditions and factors that lead to its realization, avoiding it as much as possible and changing the investment direction.

2. Risk control refers to taking various measures to reduce the probability of risk realization and the degree of economic loss.

3. risk sharing. It refers to the joint action of investors to spread risk losses in a large number of similar risks, thus reducing the cost of risk prevention.

4. Risk transfer. It means that some risk-takers transfer risks to others through some technical and economic means, such as insurance.