MAN 4602 Lecture Notes - Lecture 2: Theory Z, Theory X And Theory Y, Paternalism
Document Summary
Political risk the unanticipated likelihood that a business"s foreign investment will be constrained by a host government"s policies. Analysis directed toward government politics and actions that influence selected sectors of the economy or specific foreign businesses in the country (e. g. restriction on imports) Analysis that reviews major political decisions likely to affect all enterprises in the country (e. g. devaluation of currencies) Three different types of risk transfer, ownership, and operating. Seizure of all businesses y a host country with little, if any, compensation to owners. Who is at the greatest risk of expropriation non-western, poor, and unstable countries (utilities and transportation) Transfer risks government policies that limit the transfer of capital, payments, production, people, and technology in and out of the country. Operational risks government policies and procedures that directly constrain management and performance of local operations. Ownership control risks government policies or actions that inhibit ownership or control of local operations.
