four different global political systems. These include democracy, Athenian democracy, representative democracy and totalitarian government. Economic-wise, there are three major national economic philosophies including capitalism, socialism and communism. Political risks encompass the political issues in a certain nation that can have a significant adverse impact on how business is undertaken in such a country. Micro-political risks include the political risks that solely influence a certain industry or group of companies in a certain nation whereas macro-political risks include the political risks that fundamentally influence all businesses in a certain nation. Political risks in tandem with global terrorism has given rise to the Terrorism Risk Insurance Act that covers business against risk of terrorism.
Another aspect of global business… Continue Reading...
and the relatively small Slovakia, they present market proximity difficulties, more significant cultural differences, greater political risk, and less advanced infrastructural development.
Question 2
It is important for Kiwi to make the right decision with regard to not only the most suitable country, but also the best city for the new manufacturing facility. The company can choose from either a port of entry or an interior city. Each option offers its own merits and demerits. A port of entry provides simpler setup and lesser logistics difficulties, while interior cities offer lower wage rates, a greater and more stable supply of labour, as well as better… Continue Reading...
years of major rising surprises in oil supply, descending surprises in the demand for oil, winding down of geopolitical risks that had endangered production, alteration in OPEC policy aims, and an appreciation of the U.S. dollar. Specifically, alterations in supply situations seem to have played a key role, with the strategy undertaken by OPEC purposed at supporting its market share substantially worsening the decline in prices that was already on-going (Baffes et al., 2015).
The current international market production share for OPEC stands at 30 percent, declining from approximately 50 percent from almost 5 decades ago, significantly owing to the growth of non-OPEC major oil producers such as… Continue Reading...
