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Risks
1. Currency Risk: Currency volatility in Mexico, Brazil, and China can affect Parker Hannifin's profitability in those markets. The company might experience losses due to weakening local currencies or changes in exchange rates.
2. Regulatory Risk: Government regulations in each market can complicate Parker Hannifin's operations or even cause the company to discontinue some activities. Laws governing labor conditions, environmental protection, and other areas might be different in each country, adding yet another layer of complexity.
3. Political Risk: Political instability or changes in the countries’ governments can disrupt Parker Hannifin's activities. In addition, local public opinion might create a negative atmosphere, leading to boycotts and other forms of protest.
4. Corruption Risk: Corruption is a major problem in Mexico, Brazil, and China, and it can significantly increase the cost of doing business. Parker Hannifin might be asked to pay bribes, contributing to the country’s culture of corruption.