definitions
Define international management
Process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage
Name 3 dynamic challenges to global managers
drastic changes to technology, political and economical trends, terrorism
Define: nacionalization
The forces salve of an MNCs assets to local buyers with some compensation to the firm
What happens if governments change their economical policies for economic risk?
The foreign company becomes unprofitable and or unable to repatriate its foreign earnings
Define: appropriability of technology
Ability of the innovating firm to protect its tech from competitors and obtain economic benefits from it
List 5 countries that have rapidly developing economies
Brazil, Russia, India, china, south America
Define: expropriation
Local govt seizes and provindes inadequate compensation for foreign owned assets of an MNC
What does a country’s economic development depend on?
Economic stability and relative risk to a foreign firm
Define: common law, islamic law and civil law
Common law is when last court decisions act as precedentes for the interpretation of the law
Civil law is based o a comprehensive set of Laís based on codes and statutes
islamic law is based on religiosa beliefs
List four types of sustainability
Economic, political, social, environmental
Define dependency and hedging
Dependency is keeping both the subsidiary and the host nation dependent on the parent corporation.
Heading there a way to minimize loss, which includes political risk insurance and local debt financing
Additional considerations should foreign investors examine regarding taxes
Foreign tax credits, holidays, exemptions, and depreciation, allowances, and taxation of corporate profits
Define micro political event and creeping expropriation
Micro political event is an event that affects one industry or company or a few companies.
creeping expropriation is when that micro political risk events become more common and it indicates a government’s gradual and subtle action against foreign firm
List protectionist policies, countries impose to give preference to their own companies and industries
Tariffs, non-tariff barriers, quotas and other important trade restrictions
Define macro political risk event
An event that affects all foreign firms doing business in the country or region
How have nations managed the global account economy of intense competition?
By beginning to develop decentralized free market systems
Define e-commerce and e-business
This is marketing and sales process through the Internet, and even business is the integration of system, processes, organizations, value chains, and entire markets using the Internet and technology
Name the 10 Risks for political and economical environment
econimic Slowdown, regulatóry slowdown, increasing competition damage to reputation/brand, business interruption, failure to innovate, or customer needs, failure to attract a retain top talent, commodity price, risk, tech failure, or system failure, cash flow/liquidity risk
What do Taoka and Beeman suggest as means of adaptation for managing political risk?
Equity sharing, including the initiation of joint ventures with nationals, participative management, which requires the firm to involve nationals, actively including in labor organization for government in the management, localization of the operation, including the modification of the subsidy area, name management style, and so forth to suit, local tastes, development, assistance, including the firms, active involvement in infrastructure development, for example for an exchange generation, local sourcing of materials or parts, management training, technology transfer, securing, external debt, and so forth
How do international companies conduct political risk assessment? What are the two approaches?
1. Using experts or consultants familiar with the country or region under consideration to monitor important trends and make recommendations
2. By having staff assigned to foreign subsidiaries and having affiliates monitor local political activities, or by hiring people with foreign expertise in the political and economic conditions in regions critical to firms operation