Final Exam Review Document
I. Political Forces
1. Political risk
Determinants of political risk a) Conflict and violence – Citizens protesting against their government, Territorial disputes, Disputes based on ethnic, racial, or religious divisions
b) Terrorism and kidnapping – Unlawful acts of violence for a variety of reasons - Ransom, Overthrow government, Release of imprisoned colleagues, Revenge, Punish religious nonbelievers. Situations – Kidnapping for ransom, Paying ransom becomes counterproductive, Countermeasures by industry, Chemical and biological terrorism, Kidnapping as a means of funding terrorist groups, Business executives (local and international) as targets, Insurance, Prevention
c)…show more content… firms at competitive disadvantage abroad?
III. Assessing International Markets
1. Environmental scanning – A version of environmental scanning in which the firm identifies desirable markets by using the environmental forces to eliminate the less desirable markets
2. Market screening – A version of environmental scanning in which the firm identifies desirable markets by using the environmental forces to eliminate the less desirable markets
* Basic needs potential – An initial screening based on the basic needs potential is a logical first step, because if the need is lacking, no reasonable expenditure of effort and money will enable the firm to successfully market its goods or services.
Assessment of basic needs potential – Easier for producers of specialized industrial materials or equipment; More difficult for specialized consumer products. * Financial and economic forces – Second Screening- reduces potential markets through analysis of financial and economic forces: Inflation trends, Currency exchange rated,