To What Extent Can A Company Expand Overseas

This question requires you to integrate a variety of sources into a coherent, well-written essay. Refer to the sources to support your position; avoid mere paraphrase or summary. Your argument should be central; the sources should support this argument.

-The organization of the essay is terrific. The essay starts with introductions on those negative depiction, and soon the author declares her statement and opinion, followed by persuasive evidences and arguments distinguished clearly.

The political risk of investing in developed countries is roughly comparable with the risks of investing in the developing countries.

In the years following the Civil War, several developments that came with the second Industrial Revolution fueled the nation’s urge for overseas expansion. Many Americans approved of overseas expansion, believing that the superior and exceptional United States functioned as an “international policeman,” and therefore had an obligation to civilize other countries, including the Philippines, Cuba, and Puerto Rico. Meanwhile, those who criticized overseas expansion believed that it violated the traditional American ideals of democracy and peace, and that the United States should focus more on the problems within the country. While the supporters and opponents of overseas expansion had entirely different views from each other, they were alike in that they both based their beliefs on the role of the country as an emerging power and its national identity.

The essay fails to address several aspects of the assignment and demonstrates a lack of clear understanding of the concepts and facts. It contains serious flaws.

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

Directions: The following prompt is based on the accompanying eight sources. This question requires you to integrate a variety of sources into a coherent, well-written essay. Refer to the sources to support your position; avoid mere paraphrase or summary. Your argument should be central; the sources should support this argument. Remember to attribute both direct and indirect citations.

All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they

The Possibilities of Expanding the Business into New Overseas Markets As international marketing consultant of Mackie’s of Scotland, the ice cream maker, it is my duty to consider the possibilities of expanding the business into new overseas markets, successfully. The Scottish ice cream market will be researched thoroughly. The UK target market of Mackie’s will be analysed. Finally a suitable country will be chosen to market the product to.

One of the first steps in managing political risks is to analyze the political environment for risks to the business. According to Luthans, the analysis of risk can be done with two types of political risk analysis, Macro and Micro Analysis. Macro Analysis is an analysis of political ideas and decisions that will impact all businesses in a country and Micro Analysis is an analysis of governmental regulations and policies that affect a specific sector of on economy or market such as the auto industry (Luthans, 2015). However, there are other risks that can be more difficult to analyze such as terrorism especially in today’s political unrest. Some major corporations have spent thousands of dollars on macro and micro analyses just to have a world event disrupt or completely destroy operations. Tata motors dealt with political battles as well as a terrorist event.

A country’s regimes are imposed to protect the country’s interest, but these protections will create unavoidable conflict-of-interest where businesses are conducted. Likewise, the super power China and the United States, the perpetual political changes create a direct implication to the day-to-day business activities and the type business investment plan to enter the country. Hence, conflict-of-interests are commonly tensions between the different in political ideologies, social issues, historical and culture background. As these interests are the catalysts to the type of regimes that the country will impose; moreover, these regimes will favour the different types of industries.

This dissertations presents concept of political risk in the context of Efficient Market Theory (Hypothesis) and State capitalism. The paper explores the link between the three ways of insuring political risk to economic theories. Using case study of a multinational firm the political regime and its effect has been explored on business situations and how it can be managed. Political risks are the threats arising for a business due to the actions of a host government. Multinational firms in particular face political risks due to expansion of their businesses to developing countries. Author has explained and examined how political risk management has been developed in the contemporary history. A comparative analysis of concepts that deal with political risk under the contexts of prevailing ideologies; political and economic constructs has been conducted.

There are always business risk when it comes to expanding a company, especially from an international standpoint. There are many strategic risk that needs to be evaluated in order to expand the company successfully. Examining the possible risk of foreign currency exposure, basic functions of international banking/financial market, support of long term financing of operations, and assessment of opportunities that can be implemented within the company. There are risk on three dimensions of international finance, economic trends of the country, impact of globalization and monetary system. All of these situations will be discussed in this paper.

In this written report, I will be including both sides of the argument which enable me to form my opinion as well as conclusion.

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).