MCS 4600 Chapter Notes - Chapter 8: Guanxi, Global Sourcing, Extensive-Form Game

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 4600
• Professor: Jeffrey O' Leary

Document Summary

Risk of a change in government policy that would adversely impact a company"s ability to operate effectively and profitably. The less developed and income per capita a country is/has, the more difficult it is to predict political risk. Most nations recognize the benefits of privatization, foreign investment and the widespread of failures of stated owned enterprises which decreased political risk. As national economies increase it reduces the political risk (eu) Insurance protections against the political risk of currency inconvertibility, expropriation, and destruction due to civil unrest or political instability (opic promotes. Factor costs include land, labor and capital: declining importance of direct manufacturing labor as a percentage of total product cost. It is important that a countries infrastructure be developed to support manufacturing operations. Including: power, transportation and roads, communications, service and component suppliers, a labour pool, civil order, effective governance and reliable access to foreign exchange.