chap 6

18問 • 1年前

問題一覧

Is independent and free from all external control; enjoys full legal equality with other states; governs its own territory; selects its own political, economic, and social systems; and has the power to enter into agreements with other nations.

sovereign state

refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

sovereignty

the ancient Greeks conceived of and criticized three fundamental forms of government:

rule by one, rule by few, and rule by many

The common terms for these forms in use today are:

monarchy (or dictatorship), aristocracy (or oligarchy), and democracy

can best be described as an intense feeling of national pride and unity, an awakening of a nation’s people to pride in their country.

nationalism

is directed generally toward all foreign countries, with a widespread fear or animosity directed at a particular country

targeted fear and/or animosity

Political Risks of Global Business (6)

- Confiscation, Expropriation, and Domestication - economic risks - political sanctions - Political and Social Activists and Nongovernmental Organizations - violence, terrorism, and war - cyberterrorism and cybercrime

The most severe political risk is _____, that is, the seizing of a company’s assets without payment.

confiscation

Less drastic, but still severe, is ____ , where the government seizes an investment but makes some reimbursement for the assets

expropriation

which occurs when host countries gradually cause the transfer of foreign investments to national control and ownership through a series of government decrees that mandate local ownership and greater national involvement in a company’s management.

domestication

ECONOMIC RISKS (6)

exchange controls local-content laws import restrictions tax controls price controls labor problems

_____ stem from shortages of foreign exchange held by a country. When a nation faces shortages of foreign exchange and/or a substantial amount of capital is leaving the country, controls may be levied over all movements of capital or selectively against the most politically vulnerable companies to conserve the

exchange controls

one or a group of nations may boycott another nation, thereby stopping all trade between the countries, or may issue sanctions against the trade of specific products

political sanctions

can also interrupt the normal fl ow of trade. ___ can range from those who seek to bring about peaceful change to those who resort to violence and terrorism to effect change. When well organized, the actions of PSAs can succeed.

political and social activists (PSAs)

Assessing political vulnerability (2)

politically sensitive products and issues forecasting political risks

Lessening Political Vulnerability (6)

joint venture expanding the investment base licensing planned domestication political bargaining political payoffs

Including several investors and banks in fi nancing an investment in the host country is another strategy.

expanding the investment base

an attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company.

political payoffs

Chap 1

Jake Matthew · 10問 · 1年前

Chap 1