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Risks
1. Exchange Rate Risk: Daikin Industries’ extensive reliance on exports puts them at risk from fluctuations in the exchange rate. A weakened home currency would reduce the value of their products when sold overseas, and directly affect their bottom line.
2. Political Risk: Daikin Industries’ extensive reliance on exports also puts them at risk of any changes in foreign policy that could affect their ability to do business abroad. Tariffs, subsidies and partnerships that are changed or removed could hurt their profits.
3. Competition Risk: As more companies enter the global marketplace, Daikin Industries’ reliance on exports could increase their risk of increased competition from abroad, which could result in their inability to remain competitive in their current markets.
4. Supply Chain Risk: Daikin Industries’ reliance on exports also puts them at risk from disruptions in their supply chain due to delayed shipments, reduced quality of raw materials, and customs compliance issues. These types of disruptions could lead to additional costs or missed orders.