...International Business Risks Tatiana Irala MGM336-1301A-05 Instructor: Anna Goodloe Even though there are many opportunities available when conducting business internationally, the amount of risks that arise can also be limitless. However, this should not be discouraging when the managers that work abroad are well-trained and informed about the host country’s political, cultural, environmental, and economic risks and differences. These different environmental factors are constantly changing, often drastically; making it challenging to manage. For instance, the political environment in another country may be quite unstable due to a recent election. Furthermore, violence and revolutions complicate when traveling through the host country. Another risk that presents itself is in the form of culture shock. Even if the managers are familiar with the host country’s cultural differences, cultures also evolve throughout time. Environmentally, managers must respond to the future forecasts to determine the probable impact, and to ensure the survival and growth of the organization as it interacts with its dynamic environment (Phatak, Bhagat, and Kashlak, 2009). The host country in question here is Brazil with its booming economy and market for growth. Although, Brazil is known for its many negative connotations regarding bribery, corruption, and organized crime; the conditions in the labor market however remain favorable. Unemployment is at the lowest it has been in years and the...
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...In my perspective before any country decides to do business internationally, they must access the political risk in that country. Political stability is the biggest reason to attract foreign investment. Here are some common questions they should be asking themselves: 1. Is the government stable? 2. Is the government a democracy or a dictatorship? 3. Is power concentrated in the hands of a few? 4. What is the extent of government’s involvement in the private sector? Etc. Before foreign investment it is important to assess if a country believes in free markets or government control in industry. The country’s view on capitalism is also a factor for business consideration. I think that stable political system builds a strong economic environment. With proper legal policies in place, a country’s economy is bound to benefit. Bribery is an important issue in international business and unfortunately a living reality. Even though the FCPA was structured to help the U.S. companies understand what is and what is not considered bribery in a foreign land, it is not always clear what is considered a bribe. I guess perception also plays a big role. What is considered bribery by the U.S. may be considered as a gift by other countries. Countries with severe bribery conditions are known to be the ones where poverty and weak economic conditions exist. Today many companies have written and provided formal set of procedures to their employees to help them stay away from bribing anyone intentionally...
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...Assignment On Risk Management in International Business with Special Reference to Bangladesh Submitted to Dr. Shah Md. Ahsan Habib Crouse Instructor: International Business Submitted by Milton Kanti Das Id: 12364015 Program: MBA BRAC Business School 1::Introduction: Due to globalization, it’s hardly to find any business activities that are only associated within only in local market. Basically, today’s business means international business. On the other hand international business consists of lots of opportunities as well as lots of risks. Being success in the international business depends on handling of the risks properly. If these types of risks cannot handle properly doing business will be very difficult to sustain in international market. There are risks in international business among them some can be handled and some cannot be handled. Here in this page I will try to discuss those risks regarding international trade that can be handled by using different mechanism. There are different types of mechanisms have developed all over the world to reduce these risks. Throughout the paper I have tried to discuss these mechanisms also. 2::Objectives To discuss the theoretical aspect of risks and techniques of risk management in international business. To discuss the risk management tools of Bangladesh. 2.1:: Theoretical Aspect of Risks and Techniques of Risk Management in International Business: In international business firms have to face many risks due to political...
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...“Critically evaluate how international and geo-political risk to business might impact upon a person’s overall lifestyle”. Introduction My lifestyle keeps me busy but I enjoy the ability to catch up with friends and relax at a café or the beach. I am able to do the things I enjoy through working two jobs, on a regular roster. I enjoy cultural activities with friends in Sydney and regularly getting to the beach for a swim. Australia is a beautiful country which allows me to enjoy the sun and beach on a regular basis. A combination of flexibility and structure allows me to financially support myself while studying full-time; work is enjoyable and adds to my social and physical well-being. The flexibility in university and work allows me to catch up with friends regularly, while maintaining my financial independence. The political environment enhances my wellbeing by provide an avenue to defer my university fees until I graduate and get a job. Risk is considered the probability of a specific loss of worth, against the prospect of gaining value through the intentional interaction with uncertainty (Slovic, 2000). Risk is associated with a given action and/or inaction, of a foreseen/unforeseen nature that can result in a loss or gain in regards to financial wealth or physical health. Slovic (2000) expresses that all human interactions carry some risk, but the degree of risk depends on the situation and the perception of its severity. ...
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...1 CHAPTER 1 INTRODUCTION Risk management structure should be well thought-out, as well as a cultural fit and sustainable. (Smiechewicz, 2001) Uncertainty is not measurable. Risk is. - Frank Knight, Risk, Uncertainty and Profit (1921) 1.1 Introduction Success in business, to a certain degree, requires owners and managers to take calculated risks. The most successful business is usually managed by people who know when to push forward and when to pull back, when to buy and when to sell, when to stand firm and when to compromise. The successful company is managed by people who understand what risk in business is, and how this risk should be managed and mitigated. Risk is an undeniable reality of doing business today, whether domestically or globally. A successful entrepreneur does not fear risk, but strives to understand it, to manage it, even to take advantage of it. As risk management tools and techniques become more and more complex, however, companies require the services of a Risk Management specialist. A growing specialty in this field, globally, is that of international accounting risk management. International accounting professionals can contribute to the 2 success of their companies must have a strong grasp of financial risk management techniques for multinational and multilateral business transactions of great complexity. Unfortunately, as the world of business becomes increasingly borderless, risk management becomes, likewise, borderless, and...
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...this phrase is often used in business. The physical location is a key factor in determining whether a business will succeed, or fail. A few questions potential business owners have to answer are: Is location important for the success of my business, and what type of location is best for my business? Many business owners have to contemplate whether, or not, going overseas is the best fit for the product, or service, they plan on providing. When embarking into new territory, there is much uncertainty, and there are many risks associated. Before developing a presence in an international market, business owners must understand the culture, customs, and the risks related with the foreign market. There are many factors that can affect location decisions. However, selecting a location is becoming more challenging due to the increase in globalization in the workplace. Many firms consider embarking in business ventures outside their home country. Location decisions are not just within national borders, but surpass over international borders. There are key factors in achieving competitive advantage in foreign markets. Some key factors that should be considered before engaging in international business are: • Political risks and values • Economic issues: exchange rates and currency risks • Cultural issues One major factor that business owners must consider when conducting business in another country is political stability. The biggest mistake a business owner can make is underestimating...
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...Geopolitics, International Environment and Business International risk management 1 Geopolitics, International Environment and Business Risks identification Are we leading towards economic war? 2 Geopolitics, International Environment and Business Several agencies seem to reinforce this idea, particularly regarding international trade 3 “Public economic warfare” Japan JETRO, Japan External Trade Organization (www.jetro.go.jp) Created in 1958 to promote Japanese exports From the 80s it expands to developing countries. 21st century: To promote FDI into Japan To help small & medium sized companies to export. 4 USA (1992, 1993): Bill Clinton Policy "Putting People First, A National Economic Strategy For America" Governor Bill Clinton June 21, 1992 Opening up world markets. […] we will move aggressively to open foreign markets to quality American goods and services (for instance, NAFTA) Economic security council / Advocacy Center / CIA / FBI –Economic Counterintelligence Program The stakes in this game are high! 5 FRANCE: UBIFRANCE -Offices in France (partnership with chambers of trade) -80 offices in 60 different countries (156 in 120 countries if Economic Missions considered) -More than 1,400 collaborators MISSION: to make French exports easier, to support and to monitor French companies abroad. 6 7 “Private economic war” International competition Is it replacing military conflicts? Competitive...
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...especially large international business, requires high investment. More consumers sought after more goods, more service and besides last pay back time. The political systems have two types namely; democracy and totalitarianism. Economic environment, which is required in home country, host country and world economics, are supporting or objection for international business and relation to suppliers. Economic growth affects on politics social and lows, the found political system and situation politics in country, and the world has direct affects on economic and business. Social and culture are foundation of living and work for humans, they has an impact on characteristic to work and every day life. For lows, it is convention for country activities including economic activities and business. Therefore economics, political, social and lows are closely bound in terms of relationship. Technology environment refers to new knowledge factor in the world such as sciences or engineering and including strategic management because marketing competition enforce each country to invent new knowledge or know-how benefit for its own business development. Each country that has new knowledge must create new products; have low capital and high efficiency in order to keep pace with the international competitors and to respond the customers’ needs in the international market. When the country enters into international business, they must encounter risks in international business, which can...
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...1. International business environment Business mean to busy in an activity, which are related to money almost business have 50% chances of profit and losses.(Morrison, j. 2002)Business is operated in every part of the world. As the business grow. It is looking for new opportunities across the border. International business is the term use for the operation and objective of the organisation that have interest in other countries. For example Tesco, Ford, General Motor, McDonald, Disney, so many other companies. These companies have key interest to standardise their product for general acceptance. The international business becomes more complex. Tie between the different societies and organisations. (Meldrum, D.H) as businesses inter into new market it chances of 50% losses increases. Due to different in economic, political, cultural structure, policies, geography and currencies. These factor decreases profit ratio of international investment. There are no specific criteria to measure such in-stability. Every investor used their own method and measure. Uncertain condition of country make easy for international business to design their own stability criteria. (Considering risk in international business) Business has no idea about the local risk. It's difficult to operate and manage in such condition where the Culture, Social, Economic, Political, and legal structure are not stable. In such cause the international business need to take all the measurement either it`s Commercial...
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...Westminster International University in Tashkent International Aspects of Business Law 2012 - 2013 Legal Risks in Emerging Markets – Evaluation and Mitigation Legal Risks in Emerging Markets – Evaluation and Mitigation Student’s ID number | 000090 | Module name | International Aspects of Business Law | Module code | 6241170 | Tutor | Eldor Mannopov | Individual assignment | x | Group assignment | | Submission deadline | 13 March, 2013 | For Academic Registrar use only | TABLE OF CONTENTS: INTRODUCTION 3 DEFINING LEGAL RISK LEGAL RISKS IN INTERNATIONAL TRADE LEGAL RISKS COUNTRY PROFILES 4 - MALAYSIA - THAILAND 5 - VIETNAM 7 - CAMBODIA 8 CONCLUSION 9 REFERENCES 10 ITRODUCTION: Cowan PLC specializes in producing copper tubing. Following globalization and internationalization tendencies the company is currently considering an option of exporting...
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...International Sales and Distribution Management [Author Name(s), First M. Last, Omit Titles and Degrees] [Institutional Affiliation(s)] Author Note [Include any grant/funding information and a complete correspondence address.] Abstract This study focuses and aims to know the difference between domestic and international markets and how to understand how to choose the market, to learn the economic ,legal and cultural aspects of international marketing environment, to understand the risks involved in doing international business, pricing, financial terms, and payment methods used in international markets, also to learn how to gather information about the market and understand the differences between domestic and international channels and finally to understand the factors that influence the choice of distribution channels in overseas market. . Globalization has opened up markets and provided untapped opportunities to companies across the world. With increasing competition, changing customer needs and stagnation of demand in domestic markets, many companies have started looking at international opportunities. However, why go international? Why do we need to choose the market? And why does need to understand about all these? Exporting and international business can be interesting, exciting and in some cases challenging. In all cases it should be profitable and help a business grow. Doing business internationally is not the same as doing...
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...MBA505 INTERNATIONAL BUSINESS MANAGEMENT REV11A CHAPTER 1: ASSESSING THE ENVIRONMENT POLITICAL, ECONOMIC, LEGAL, TECHNOLOGICAL CHAPTER SYNOPSIS This chapter explains the elements of International Business Management. It gives a sound understanding of factors such as Political and Economic Environment, Legal Environment, and Technological Environment. Also, it covers the effects of Regional Trading Blocks, Information Technology, The Globalization of Human Capital, The Global Manager’s Role CHAPTER OUTLINE The Global Business Environment Regional Trading Blocks Information Technology The Globalization of Human Capital The Global Manager’s Role The Political and Economic Environment The Legal Environment The Technological Environment ISSUES FOR REVIEW AND DISCUSSION I. The Global Business Environment A. Global management Global management is the process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage. 1. Globalism “Global competition characterized by networks that bind countries, institutions and people in an interdependent global economy.” 2. Evidence/Indicators of Globalism The growth rate of the trade of goods has grown faster than the world production of goods. The European Union has now caught up with the United States to share the position of the world’s largest investor. 2011 AMERICAN CITY UNIVERSITY Page 1 of 28 MBA505 INTERNATIONAL BUSINESS MANAGEMENT ...
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...1. International business environment Book0)Business mean to busy in an activity, which are related to money almost business have 50% chances of profit and losses.(Morrison, j. 2002)Business is operated in every part of the world. As the business grow. It is looking for new opportunities across the border. International business is the term use for the operation and objective of the organisation that have interest in other countries. For example Tesco, Ford, General Motor, McDonald, Disney, so many other companies. These companies have key interest to standardise their product for general acceptance. The international business becomes more complex. Tie between the different societies and organisations. (Meldrum, D.H) as businesses inter into new market it chances of 50% losses increases. Due to different in economic, political, cultural structure, policies, geography and currencies. These factor decreases profit ratio of international investment. There are no specific criteria to measure such in-stability. Every investor used their own method and measure. Uncertain condition of country make easy for international business to design their own stability criteria. (Considering risk in international business) Business has no idea about the local risk. It's difficult to operate and manage in such condition where the Culture, Social, Economic, Political, and legal structure are not stable. In such cause the international business need to take all the measurement either it`s Commercial...
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...Bangladesh some calls are being terminated in nationally and some calls are being terminated internationally. In case of international call termination we need to go through of IGW service providers. Only licensed IGWs providers can terminate international call legally. This IGW or VoIP service providers are giving facility for international incoming and outgoing calls of Bangladesh. NovoTel is One of the establish IGW in Bangladesh. Now NovoTel is engaging in VoIP operation in different destination around the world. To execute this IGW operation smoothly, NovoTel always concern on its different risk management and engage in formulating competitive business strategies on regular basis to sustain this business industry. Objectives of the Study This report has been designed to accomplish two objectives; Primary objectives: • To understand the overall telecommunication structure of Bangladesh • To get an overview of IGW operations in Bangladesh Main Objectives: • Different Risks Management and corporate strategy practices of NovoTel. Significance of the Study: Risk management and strategy formulation play an important role for every business to sustain in log run. In case of telecommunication sector these two aspects in an essential consideration. Through considering this entire atmosphere I have selected the topic on “Risk management and corporate strategy practices of NovoTel”. Methodology of the study Report was conducted...
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...International Marketing Environment Jessica Bell International Marketing (MKT 320) Professor Dr. Johnnie Woodard July 20, 2011 Explain the role of government in international trade, the various levels of economic integration and the impact on international marketing. According to the business dictionary, International trading is the exchange of goods or services along international borders that allows for greater competition and more competitive pricing. The governments’ role on international trade includes restrictions that are placed on businesses, the licensing and other permissions requirements, regulations, formalities, and taxes, all of which have a direct impact on doing business. In international business, the government effects business viability. For instance, international business transactions face more taxes than domestic businesses; they also have quantitative restrictions and licenses’. Governments also impact international businesses by establishing importing and exporting policies. There are other aspects in which governments play an important role in international business like infrastructure, law and order and minimizing risks. Economic integration has been one of the main economic developments affecting world markets since World War II. Economic integration refers to trade unification between different states by the partial or full abolishing of customs tariffs on trade taking place...
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