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Accounting - 11. Exposure to external events

11. Exposure to external events

Let's consider the Asian currency crash that happened a number years ago.
Some businesses such as those in the supply of computer hardware and others
that rely on selling imported goods, for example in Australia, had a heavy
exposure. Other businesses were more insulated. Recognition of the likely
businesses to suffer and the development of suitable strategies in response
to a problem like this are relevant.

On an historic level the impact of the introduction of DVD players on the
entertainment industry, in particular cinemas and theatres, are another
example.

In some circumstances businesses successfully respond to the challenge
posed by dramatic changes whilst in other cases the businesses go under.

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