What are the three forms of risk companies face when operating in a foreign country?
What will be an ideal response?
Risks in the international arena come in three forms: political, economic, and legal. Political risk may involve government changes, social unrest, strikes, terrorism, and violent conflict. Political risk may also be more subtle (such as threats). Economic risk includes inflation rates, repatriation of profits, and corruption. Legal risks include local ownership requirements and the protection of intellectual property rights.
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A director may be a _____________ but it is not required unless stated in the articles of incorporation or bylaws.
Fill in the blank(s) with the appropriate word(s).
Companies like Dell and General Electric have prospered and grown by:
A. focusing on manufacturing of goods rather than the provision of services. B. achieving natural monopolies in their markets. C. using franchise arrangements to sell their products in a wider range of markets. D. getting closer to their customers by offering a variety of services.