1) Define Political Factors a company may face outside of its home market.
2) In what way do political factors affect companies outside of their home market?
3) Define political risk.
4) What are some political risk associated with companies doing business outside of their home market?
One of the political factors affecting companies outside their home market is political instability. It is very difficult for a company to develop in countries with long-term conflict. The people living in those countries remain poor and therefore companies can find it hard to sell their products since people lack money due to unemployment and poverty. Another factor is corruption whereby companies are forced to bribe due to over complicating and slowing of simple processes such as buying or selling property and starting businesses (Wartick, Wood, 1998).
Poor management is also a political factor that has led to countries remaining poor due to bad government. Governments need to raise and spend finance wisely on the right projects and also build and maintain infrastructure so as to encourage development. They also need to setup business practices and their laws in ...
This solution provides assistance with the questions attached regarding international business.
Example Management Questions
1. Agree or disagree with the following statement - the U.S. has a competitive disadvantage in competing in global markets. Explain and support your answer.
2. Which do you think are the next two "hot" international markets for U.S. investment? Justify your answer with economic data.
3. Compare and contrast Sony, LG, and Samsung as international conglomerates competing in similar markets - what are their international competitive strategies (surf the net and check out their web sites).
4. What external environmental factors seem to be driving the international marketplace?
5. What influence do you believe shareholders have over a company's board of directors?
5b.What is the reality of stockholders power impact on a firm's strategy/ strategic management?
6. What is an appropriate compensation package for a CEO? 3. What relationship do you see between a company's board of directors and the development of the business strategy?
7. Do you believe that a company's board of directors can change the ethical standards in a business? How can they do it?
8. Would you like to serve on a company's board of directors? What do you think that you could accomplish? What do you believe would be fair compensation to you for your contribution and personal liability?
9. How does agency theory relate when discussing CEO compensation and strategic behavior? How are they linked?View Full Posting Details