Mgmt 302 Final Essay

1549 Words7 Pages
Lauren Hodge-Clark
Prof. McMahon
MGMT 302-11
8 December 2014
Final Exam
1. What is the difference between downward communication and upward communication? What is the primary purpose of each? Is lateral communication any different?
Downward communication- the transmission of information from manager to subordinate.
Purpose-is to convey orders and information managers use to let their people know what it is that needs to be done and how well they are doing.
Upward communication- the transfer of information from subordinate to superior.
Purpose- is to provide feedback, ask questions, or obtain assistance from higher-level management.
Lateral communication- means communication between and amongst all given entities at a particular level of
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Joint Ventures (JV)- an agreement under which two or more partners own or control a business.
6. In the context of international business, what is meant by the term "political risk"? In general, how do MNCs analyze this risk?
Political Risk- the unanticipated likelihood that a business’s foreign investment will be constrained by host government’s policy.
Awareness- MNCs must be aware of the political risks factors present in doing business abroad and develop strategies to respond to them. Policy and control mechanisms, along within certain nations allow firms to evaluate the inherent risk of doing business there.
7. What is expropriation risk? Who has expropriated in the past (1959 – present)?
Expropriation- the seizure of doing business with little, if any, compensation to the owners.
Indigenization laws required the national to hold a majority interest in operations.
Expropriation is more likely to occur in non-Western countries that are poor, relatively unstable, and suspicious of foreign multinationals.
8. Explain the role of host governments in alliances.
Host governments are active in mandating that investors take on partners, and these mandates can pose managerial and operational challenges for MNCs.
9. What are the main factors that help influence whether decision-making will be centralized or decentralized?
A number of factors influence international managers’ conclusions about retaining authority or

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