Introduction

The food and beverages industry is all companies involved in processing raw food materials, packaging, and distributing them. This includes fresh, prepared foods as well as packaged foods, and alcoholic and nonalcoholic beverages. Any product meant for human consumption, aside from pharmaceuticals, passes through this industry. The food industry is a complex, global collective of diverse businesses that supply much of the food energy consumed by the world population. Only subsistence, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The food industry includes: Regulation: local, regional, national and international rules and regulations for food production and sale, including food quality and food safety, and industry

lobbying activities Education: academic, vocational, consultancy. Research and development: food technology. Financial services: insurance, credit. Agriculture: Raising of crops and livestock, seafood. Food processing: preparation of fresh products for market, manufacture of prepared food products Marketing: promotion of generic products (e.g. milk board), new products, public opinion, through advertising, packaging, public relations, etc. Wholesale and distribution: warehousing, transportation, logistics.

Overview
In this assignment we focus in the major risk areas of foreign countries. If we try to set up a plant what types of problems may arise, in this assignment we try to figure it out. To set up a plant many types of problems may rise like, political risk, environmental challenges, cultural pattern of that country, currency conversion rate, interest rate risk, nature of government, economic stability of that country, transportation facility of that country etc. Based on these problems we give some recommendations to overcome the risks & set up new plants.

The food and beverage company have decided that they want to expand their operations to other parts of the world. In this situation the company may face some risks, and the risks are may include:

Economic risk: This risk refers to a country's ability to pay back its debts. A country with stable finances and a stronger economy should provide more reliable investments than a country with weaker finances or an unsound economy. In this situation the food and beverage company easily expand their business of that country.

Political risk: This risk refers to the political decisions made within a country that might result in an unanticipated loss to investors. While economic risk is often referred to as a country's ability to pay back its debts, political risk is sometimes referred to as the willingness of a country to pay debts or maintain a hospitable climate for outside investment. Even if a country's economy is strong, if the political climate is unfriendly to outside investors, the country may not be a good candidate for them.

Laws and regulations risk: Laws and regulations in international trade can be complex, and they may have an impact on various aspects of their operations. Make sure that any contract they sign stipulates that it is governed by the countrys legislation. They will also need to investigate how their target market deals with intellectual property , health and environmental standards, taxations, customs and duties, language, consumer protection and payment conditions.

Water pollution: Water is the main ingredient in substantially all their products and water resources in many parts of the world are facing unprecedented challenges from population pressures, pollution, poor management and the impact of climate change. As demand for water resources increases around the world, the company that depend on abundant water resources, including, may face increased production costs or capacity constraints which could adversely affect their profitability or growth strategy over the long term.

Weather condition: Sales of certain of their products are significantly influenced by weather conditions. They ordinarily record their highest sales levels during hotter weather in the spring and summer months, but unseasonably cool weather conditions could depress demand and negatively impact our results of operations.

Currency exchange rate risk: Foreign companies often generate sales and income in their local currency - such as euros or Swiss francs. As a result, the food and beverage company from the U.S. must convert these currencies into euros at some point. Unfortunately, the exchange rate between currencies fluctuates over time, and can lead to unexpected gains or losses.

Fluctuations in interest rates could affect our financial results: They finance a portion of their operations through interest-bearing loans and in the future they may conduct additional debt financing through loans, the issuance of corporate bonds or other means. In addition, they may finance future acquisitions in whole or in part through additional borrowings. Although they use fixed-interest transactions and derivative instruments to manage their interest rate exposure, large increases in interest rates could have an adverse effect on our financial condition and results of operations.

Pay attention to health and environmental issues: More and more countries are adopting strict regulations and standards to protect consumer health and the environment. These apply particularly to food products, prescription drugs, chemicals and common consumer products.

Failure to successfully identify and complete acquisitions and joint ventures that complement their existing operations could have an adverse effect on their medium- and long-term growth objectives: They may be unable to identify appropriate acquisition and expansion opportunities or may be unable to agree terms with potential counterparties, including due to competing bids. They may fail to receive necessary consents, clearances and approvals in connection with an acquisition or joint venture. They may be unable to raise necessary capital on favorable terms; If they do not successfully execute our acquisition strategy, they may be unable to realize their medium- and long-term growth objectives.

The food and beverage company may also face some other risks, that are: Changes in the legal and regulatory environment could limit their business activities, increase their operating costs, reduce demand for their products or result in litigation.

If they are not able to build and sustain proper information technology infrastructure, successfully implement their ongoing business transformation initiative or outsource certain functions effectively, our business could suffer.

 If they are unable to hire or retain key employees or a highly skilled and diverse workforce, it could have a negative impact on their business.

Recommendations
1. Find a political stable country, political unstable country is very risky for business. 2. Create low pollution, otherwise environmental organizations may protest new business. 3. Set business in environmentally friendly countries. 4. Set business in that type of countries where interest rate is minimal. 5. Examine countrys law and regulations. 6. Labour cost should be minimal.

Reference or sources
www.suntory.com globaledge.msu.edu en.wikipedia.org