Three Major Political And Economic Global Risks

1. Political: “issues affecting our international vendors could materially adversely affect our business and financial performance.”(Page 8.)

In human societies there will always be issues or problems that occur which cause some form of reaction from those who feel that their values or societal equilibrium is being threatened. Stanley Cohen and Jock Young led the way in explaining the notion of moral panics and how they are formed and their consequences on society. There have been numerous of these moral phenomena over the years, which have gripped society in a vice lock of terror and more often than not, ignorance. This essay will discuss the concept of the moral panic and look at the case of HIV/AIDS which caused a huge conflict of morality within society. This essay will also analyse the failings of health organisations, politicians, and the

As previously identified, there are also “non-legal/extra-governmental” political risks which could bring unexpected upheaval to foreign firms. Macro political risks such as the threat of violence, corruption, war or military coup, political instability and terrorism are all direct threats to foreign investors.

A1. Global risks are usually predictable and have a high probability of occurrence but are often referred to as uncontrollable risks (Merna, 2008). Of the risks listed above, one that has more of a global aspect on marketplace activities is the political and regulatory risks. This would include potential losses from expropriation, nationalization, civil unrest, terrorism and significant changes to trade policy. Specifically,

1-Conquering poverty and disease must be a global effort. 2-If the nations of the world fail to lend a helping hand when tragedy strikes an individual country, the disastrous repercussions can spread globally. 3-Without outside funds supporting a country's economy during times of economic disaster, that country’s infrastructure might be at risk of a complete collapse. 4-When one country's economy falls, a domino effect can occur. 5-Thus, the global economy suffers when an individual country's economy falls. 6-Similarly, when disease ravages a country, that country's ability to care for its citizens becomes almost impossible. 7-Without emergency medical supplies from other countries and medical assistance from global organizations such

In business, dangers sneak every step of the way, contender advancements that debilitate the suitability of your items or administrations, new players in the commercial center, antagonistic patterns in product costs, monetary standards, loan fees or the economy. Toss in potential interruptions to supply chains that have been extended crosswise over a huge number of miles and nation fringes by globalization, and the open door for something to turn out badly is, without a doubt, troubling.

However, the investment was not without risks. There are four types of risks in international business called cross-culture risk, country risk, currency risk and commercial risk. Cross-cultural risk refers to a situation or event where a cultural miscommunication puts some human value at stake. Country risk describes the potentially adverse effects on company operations and profitability holes by developments in the political, legal, and economic environment in a foreign country. Currency risk is the risk of adverse unexpected fluctuations in exchange rates. Commercial risk refers to potential loss or failure from poorly developed or executed business strategies, tactics, or procedures (Boter & Wincent, 2010). Investment in Rulmenti Grei, Timken might face the salient risks of political and economic instability. Romania’s economic growth was slower, inflation was higher, and the labor force was more volatile. Furthermore, there might be a risk of re-nationalization. It is said that economic risk analysis tells corporate leaders the ability of a particular country to pay its debt while political risk analysis tells them whether that country will pay its debt. Political risk measures the stability of individual countries through the

There is a troubling surge in malaria and diphtheria, two diseases eradicated in the 1970s and 1990s respectively. Furthermore, the country has short supplies of antiretrovirals medicine to treat the infected population with HIV/AIDS, exposing others of infection.

1. Political: “issues affecting our international vendors could materially adversely affect our business and financial performance.”(Page 8.)

In a global environment, businesses have many business risks and one of them is federal governmental

In addressing the facts that the “Pentagon is unveiling that climate change brings great risk for world wide security” (Banerjee, Hennigan, 2014). As the Pentagon analyst I take great pride in giving the conclusion that we as a society needs to take climate change seriously. In the Pentagon plan they are taking great preparation so they can be cost effective. In the article they are using satellite images that portray that the “southwestern countries have hot spots that could carry high levels of methane that can become hazardous” for humans and animals health issues (Banerjee, Hennigan, 2014). Corresponding to the article it seems like they are trying to stop the founding to the Pentagon which I have the confidence in using all of our resources that we as a whole nation can help slow down the global warming. The general issue of climate change is that no one really wants to learn about it, until it effects there home town. By this phase learning about climate change will be too late, and after the event.

Back at the household level, families are forced to redistribute whatever remaining income they have in order to care for sick family members, or to provide for themselves if the income earner has passed away. Children and youth are removed from their schooling and expected to care for the sick, grandparents expected to look after their grandchildren, and many children are left orphaned and under the care and expense of the national government. Families are socially excluded, burdened with health costs, and the overall demographic and future of Africa is changing as the youth are either contracting the virus or not able to attend school, hampering their employment options in the future. A nation specific micro level example of how HIV/AIDS impacts a nation was a study that was conducted in South Africa that determined the factual negative impact on their economy. They found these conclusions due to the HIV/AIDS disease: a lower labour force, lower productivity, a cost pressure on companies, lower incomes, lower population, decreased investment potential, an increased demand for health services and lastly a higher government expenditure on these required health services (Drimie). From this one can see how the disease can impact a nation and therefore begin to understand the macro, global impact this disease can have in the years to come if an adequate treatment or cure is not put in place to slow the spread of the HIV virus.

This disease has made people outcasts in our society because they have this disease that can kill or make someone ill for a long period of time which will adventually lead to death. Widdison and Delaney (1996) write, "It is convenient to characterize a social problem as a conflict of values and duties, a conflict of rights or social condition that leads to or is thought to lead to harmful consequences". (Page 10) Staying with the topic that over population and poverty combined causes social problems such as scarce jobs and resources for people but only that overpopulation is responsible for the conditions, which contribute to the overall lowering of the quality of life of human beings in society. Another problem is AIDS, which is both a population and social problem. People are sometimes not accepted because they have the AIDS virus. This also affects the poor people more than the wealthy because AIDS is more common among poor neighborhoods because they have less money to buy things such as condoms to prevent the spread of AIDS and other diseases. According to the Global AIDS Policy Commission "about 95 percent were spent in industrialized countries that have less than 25 percent of the world's population", 18 percent of the people with AIDS and 15 percent of HIV infections worldwide." (Tarantola and Mann, 1995 pages 123-124) According these numbers, a very large

1. Political risk and country risk are challenges that must be strategically considered by multinational firms. What is one real-world firm that deals with political and country risk?

Evans and Richardson (2007), contend that globalized economic environment is complex and changes from time to time and this places a heavy responsibility on multinationals and other business enterprises. They are forced to adapt in order to deal with these factors for the benefit of their organizations. A company cannot ignore political issues when assessing the business environment in which it operates because it affects government policies such as licensing, regulation and taxation, which have a direct consequence on the activities of a business enterprise (Evans, & Richardson, 2007).