The reward of owning land sometimes was simply survival. Hardships that they faced included opposition from local Native peoples, they needed to build boundaries on their land where it was open in the past and it inhibited the lives of the native people as well as the wildlife. Weather was a tremendous issue as well. One other example was the winter of 1886. If you look at artwork created by Charles M. Russell you will find pictures reflecting the hardships - one in particular is a cow starving as the winter was so hard they were unable to find food nor break ice to get water nor find shelter.
There is no risk
Because they were desperate for the land. They needed to expand to a larger area, and wouldn't mind risking their lives. They also didn't want any of the other countries to claim it before they did.
The political risk refers to the instability of the political system in a country.
Account freezing and money laundering are the mostly frequently encountered political risks in the foreign business. Being scammed is another political risk.
the risk/cost to reward ratio was not worth it.
The reward of owning land sometimes was simply survival. Hardships that they faced included opposition from local Native peoples, they needed to build boundaries on their land where it was open in the past and it inhibited the lives of the native people as well as the wildlife. Weather was a tremendous issue as well. One other example was the winter of 1886. If you look at artwork created by Charles M. Russell you will find pictures reflecting the hardships - one in particular is a cow starving as the winter was so hard they were unable to find food nor break ice to get water nor find shelter.
My personal opinion is that profit is the reward of risk avoidance rather than risk taking.
A risk that equals or is less than the reward.
Never
There are a lot, but Harry Markowitz's theory of diversification is one of the most important, and won him the nobel prize. It's based on the idea that if I invest in one company, I assume a certain amount of risk for a certain amount of reward. But, if I invest in that same company and 1 other random company with a similar risk/reward ratio- then my risk is reduced while my reward is the same. Think about it. If I invest in a software comapny and a gas company, there is 50/50 chance that each one does well. So if one does bad, then I still have a 25% chance of the other one making that reward up. And I can continue to invest into different companies reducing my risk while keeping my reward the same. Investing in about 30 companies is statistically the best you can do, as far as risk vs. reward. After about 30 companies, the benefits are so minimal that most economist agree it is not worth it. So by diversifiying my investments, I am keeping the same level of reward (which is income) while reducing my risk. When I reduce my risk, I can increase my investment, generating greater rewards.
There are a lot, but Harry Markowitz's theory of diversification is one of the most important, and won him the nobel prize. It's based on the idea that if I invest in one company, I assume a certain amount of risk for a certain amount of reward. But, if I invest in that same company and 1 other random company with a similar risk/reward ratio- then my risk is reduced while my reward is the same. Think about it. If I invest in a software comapny and a gas company, there is 50/50 chance that each one does well. So if one does bad, then I still have a 25% chance of the other one making that reward up. And I can continue to invest into different companies reducing my risk while keeping my reward the same. Investing in about 30 companies is statistically the best you can do, as far as risk vs. reward. After about 30 companies, the benefits are so minimal that most economist agree it is not worth it. So by diversifiying my investments, I am keeping the same level of reward (which is income) while reducing my risk. When I reduce my risk, I can increase my investment, generating greater rewards.
Pro - The greater the risk, the greater the reward Con - Risk = Loss
risk taking
Ax Men - 2008 Risk and Reward 1-2 is rated/received certificates of: Australia:PG
High Risk, High Reward
entrepreneur