International Business Example Questions
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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?
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International Business
Political factors
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 ...
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