International Management

Q1

Different political systems and ideologies define the political climate of any given country. With hostile political climates, there is a great threat of doing business in the country despite the numerous opportunities for the MNCs (Luthans & Doh, 2012). With peaceful political systems MNCs have a better ground for conducting business in different countries. The governments of Russia and China have control over many industries compared to EU which is a high risk towards MNCs. The EU has challenges of fluctuating currency which is a risk to the MNC

Q2

Privatization of assets is as a result of finding a viable solution to state-owned assets that have been characterized with poor performance significantly high costs. The SOEs have excessive spending and the power to run them is invested in a few politicians whose interest is to gain support from labor unions and workers in order to be reelected resulting to misuse, misguide and unfair distribution of resources (Luthans & Doh, 2012).

Pros of FDI

1. It creates a competitive advantage for the business
2. It offsets volatility

• It raises the standards of living

Cons

1. There can be comparative advantage of there is much of foreign ownership
2. Business can be stripped of its value by the foreign investors making it unprofitable.

Q3

It can be learned that corruption has a severe effect on the economy as it hinders proper growth. When doing business in the US it is important to note the heavy penalty that can be fined (Luthans & Doh, 2012). Direct effects of corruption include slow economy while the indirect is that there is a relationship between corruption and the rate of growth in the country. An official should report the matter of the bribery and further investigations should be made

Q4

It is arguably true to say by getting involved in social responsibility by MNCs is both a sense of social responsibility as well as good business. They encourage environment-friendly practices to the community creating a gain of trust from the community which is a good business tactic.

Q5

Culture can be said to be the art of manifestation which is based on characteristics and knowledge of a given group of people which can be defined by race, language, and religion. An attitude such as centralized and decentralized decision making can be used to differentiate. Some organization structure requires the top management to make all the important decisions while in others all levels from the bottom to the highest are involved (Luthans & Doh, 2012). Attitudes vary in the US, Germany and even Japan resulting to different management. It is true to say that management style differs in that US has a decentralized approach, Japan a group oriented and Germany exercise a bureaucratic one.

Q6

Value can be considered to be something of importance, usefulness or worth. There are cultural differences in the world that differ from each other. Values do not easily change and they are known to promote harmony, individuality as well as consensus. Value has a direct connection with culture as it defines it (Luthans & Doh, 2012).

Q7

They include collective dimension, eating behaviors as well as dressing. Indian and China deeply culture in their food and dressing that greatly differ from that of America. America has an individualistic dimension while India and China have a collection one. America eating habits vary from others as they are not deeply cultured as they continue to evolve with time (Luthans & Doh, 2012).

Q8

Mexico

1. Multinational are interested in setting up operation in Mexico is that there is a productive workforce which will result in high-quality goods and second the economy is full of potential and it is growing.
2. Culture can be considered to be a key due to its sensitivity. Being new in Mexico, US can be considered to have a fewer problem compared to Europeans and worse for Japanese. The difference between the concept of time between Mexican and American can be a major hesitant block (Luthans & Doh, 2012).
3. It is important to study the cultural difference as it would help in identifying the differences and have a way of solving and addressing them so that they may not be a hindrance to the company operations. It will create a ground of understanding what the Mexicans are accustomed to creating a conducive environment (Luthans & Doh, 2012).

Q9

The US is more comfortable with the guided missile form of organizational culture. On the other hand, Japan feels comfortable with a family structure due to the value the place in relationships as their interest does not lay into seeking power (Luthans & Doh, 2012). It is important to understand organization culture as it is significant to the working formula that can best fit them creating a chance for the business to survive.

Q10

Negotiation is an important aspect as it will involve bargaining with the other potential partner in order to arrive at an agreement. The steps include planning, development of an interpersonal relationship, and exchange of information, persuasion and agreement. Negotiation should be done by the group as objectives will be identified. All the steps are done with all the sides being present as they will attain their goals.

Q11

China

1. The Chinese economy can be said that it will continue to grow a factor attributed to advanced technology and high levels of education. However, this can hurt the prospect by the through the continued attempt by the government of integrating socialist views, corruption, counterfeiting and well as the violation of human rights (Luthans & Doh, 2012).
2. This is because the trend is changing and there is also outsourcing by other companies. The issue of wage differentials may also disappear with time due to the changing human demands.
3. Contextual, indirect, and succinct are some of the effective approaches that should be used by the MNCs (Luthans & Doh, 2012). This will form a better understanding of the Chinese workers and the management through negotiations that will the works motivated and high productivity will be experienced resulting to quality goods which in return will yield great profits for the MNSCs.

 

 

 

 

 

 

 

 

 

 

 

Reference

Luthans, F., & Doh, J. P. (2012). International Management: Culture, Strategy and Behavior, Eight Editions. McGraw-Hill