A client has a local handicrafts business in Afghanistan that sells miscellaneous items to the local market and foreigners, including people from the United States of America, India, and Pakistan. The goal is to expand the business globally, starting with California and then New York in the United States of America, with a donor from Afghanistan who is willing to invest in the business expansion with profit sharing in return. As a multinational firm in Dubai, United Arab Emirates that offers business consultancy to clients worldwide, your company has asked you to compile a short report on risk modeling and strategies to deal with those business risks to help the client.

Tasks:

1. Identify the business risks (at least five) associated with the business expansion in California and New York, USA.

2. Develop a list of strategies to mitigate business risks based on principles of risk management.