Choose a country with a political structure different than your own. Then, respond to the following questions:
- Tell which country you chose and describe its political structure.
- Discuss two political risks that you foresee in doing business with this country.
- Tell how you might minimize the risks of your company investing in a manufacturing plant and distribution strategy in this country.
SOLUTION This solution is FREE courtesy of BrainMass!
China is a country that has a strongly government controlled political structure, which essentially means that nearly every aspect of the lives of the citizens of this country are controlled in some respect by the government. The political structure of China is strongly controlled by the Chinese Communist Party, and all of its provinces are controlled by this Communist Party due to the fact that the administrators and governing bodies of its provinces are all subordinate to, and members of, the Communist Party as well.
Due to these factors, one political risk that I foresee in doing business with this country, is the risk of having the business organization shut down due to the fact that it produces products that are not commensurate with Communist Party ideology. Another political risk in doing business with this country, is the fact that any expression of disagreement with communist party methodology by employees or leadership of the business could result in lost profits and or the expulsion of the organization from China.
Minimizing the risks for my company investing in a manufacturing plant and distribution strategy in this country would entail manufacturing products that are demanded by the Chinese citizens, but do not in any way detracting from Communist Party ideals. In addition, all of the staff and management of this company will be instructed on refraining from making any ideological or political statements while functioning in China, in order to minimize the risk of detrimental effects.© BrainMass Inc. brainmass.com October 4, 2022, 12:49 pm ad1c9bdddf>