The primary reason for the increasing globalization is that firms within the industry areattracted by the rising level of income and wealth and the advantage of cheap labor within relatively newindustrialized countries such as China, India, and Brazil. While geographic diversity and globalization helps toreduce companies exposure to risks in any one country, they`re subject to risks associated with all thedifferent international operations, including, changes in exchange rates, natural disasters , and governmentcontrols