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Global Business Risk

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In 500 words or less, discuss risk as a factor in planning to do business internationally. Include full reference annotations in APA format.

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Solution Summary

The solution discusses global business risk as a factor of culture and organizational capability; 284 words in three paragraphs; 8 references. Includes an accompanying attachment to preserve proper APA formatting (MS Word doc).

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Risk is a measure of uncertainty. Global risk is the uncertainty faced by multi-national companies. Hofstede (2001 & 2005), Sheridan (2005), and Montagliani (1998) categorized global risk in terms of cultural diversity. Huntington (1998) took things a step further and predicted a clash of civilizations to be the greatest global threat in this, the second era of globalization-once called the post-cold war era. Bottici and Challand (2006) rebutted Huntington in favor of re-education and diversity and cultural sensitivity training more in line with the conclusions of Hofstede and Sheridan.

Montagliani and Giacalone (1998) estimated that 16-40% of all expatriates do not complete their assigned projects due to failure to adapt to the indigenous culture. This gives us a ...

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