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Unit 1 Individual Project
Demetria Mitchell
April 29, 2012

This report is addressed to the senior management team of the following issues: what host foreign countries could face a result of expansion; cultural barriers and diversity issues; diversity in the international arena; description of two political and economic issues due to global expansion and methods addressed to them; and the importance and implications of each item in PPQ Parts expansion plans to Germany and Japan.

UNIT INDIVIDUAL PROJECT PPQ Parts has determined that for the company to expand globally over the next several years, its managers must be properly trained in multiculturalism and diversity management. PPQ Parts executives must be aware of any political and economic concerns that may arise during the expansion. A few issues that could arise from the host foreign country as a result of the expansion are as follows: * Political risks-dealing with profits cause of the drastic changes in a country’s business environment. * Social risks-can cause riots and demonstrations due to abrupt changes in how a company does business in that country. * Economic risks-mismanagement by the country’s government (AIU, 2012).
The cultural barriers and diversity issues that are commonly encountered by international/multinational (MNC) and global organizations are social, cultural, economic, legal, and political differences; quotas; tariffs; and subsidies (AIU, 2012).
Diversity has become an important topic in the international arena due to it being least advantageous, with little local responsiveness and little cost advantage due to exporting or licensing goods from the home country (Heizer & Render, 2012). The issues that could arise from issues related to multiculturalism and when diversity are ignored in...

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