Management for Political Risk
Not what you're looking for?
1- Political risk is the risk that a firm's host government intervenes in the economy as to adversely affect the firm.
What are the ways in which the host government can do this?
2- In developing a global business venture, one should never assume that the culture of the target country matches that of your own country, with respect to the product you plan to sell in that country. In other words, is satellite radio really important to the majority of the people in India?
What do you think?
Purchase this Solution
Solution Summary
The solution examines management for political risk. The ways in which a host government can intervene in an economy is analyzed.
Solution Preview
1.Political risk in a country takes many forms. For some leaders the pushing of currency up and down or into unstable territory is a way to gain more power, by throwing off the economy. Raising taxes on companies from outside the borders is a way to raise money at the expense of companies. Increasing tariffs on exports or imports used and needed by companies is another way for a country to provide risk to a company. The most devastating is when countries nationalize an industry or company.
Each of these poses potential risk because they interfere with the profit making function of a company. Some of these are temporary measures, some are political power issues that have either nothing to do with the company, but affect the company adversely. Tariffs and taxes on specific industry and company resources are directly related to the company or industry. These can be the most risk because they can occur during times of shipment out of product or after resources are supplied and ...
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Motivation
This tests some key elements of major motivation theories.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce