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Management in a Cross-cultural Environment Chapter 10 Managing Political Risk and Negotiations.doc

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Management in a Cross-cultural Environment Chapter 10 Managing Political Risk and Negotiations.doc

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文档介绍:Management in a Cross-cultural Environment Chapter 10 Managing Political Risk and Negotiations
Chapter 10
Managing Political Risk and Negotiations
? McGraw-panies, Inc3>., 2000
Government Corruption
5 Most Corrupt Countries
1. Cameroon
2. Paraguay
3. Honduras
4. Nigeria
5. Indonesia
5 least Corrupt Countries
1. Denmark
2. Finland
3. Sweden
4. New Zealand
5. Iceland
? McGraw-panies, Inc., 2000
Macro Analysis of Political Risk
Purpose: To review the major political decisions likely to affect all business conducted in a country
Examples
tightening controls on flow of foreign currency
bureaucratic legal systems
requiring foreign investors to establish joint ventures with local partners
? McGraw-panies, Inc., 2000
Micro Analysis of Political Risk
Purpose: government policies that influence selected sectors of the economy or specific foreign business
Examples
industry regulation
taxes on specific types of business activity
restrictive local taxes
? McGraw-panies, Inc., 2000
Political Risks
Transfer Risks - policies that limit the transfer of capital, payments, production, people, and technology in or out of a country
tariffs on exports or imports
operational Risks - policies that constrain the management and performance of local operations
price controls and financing restrictions
Ownership control risks - polices that inhibit ownershi