Please reply back to these two responses separately with a minimum of 175 words by adding more facts. Please create a paragraph for each response. Example: (Paragraph 1) I agree with Byron….
Paragraph 2: I agree with Jarius.
Here are there responses;
Byron:Cultural risk is the difference between culture of two countries,their employees and their customers. Communication between the global divisions can reduce the cultural differences between them. Respecting others culture as you respect yours, and teamwork help the employees to work in a team and achieve a desired goal by understanding there work and respecting every one’s culture.
Cultural, business, and political risk are all challenging and equally weighted in overcoming all. The political decisions,government taxes,trade barriers,unstable governments and other decisions taken by government which impact the global business are part of political risk businesses should be insured to deal with these risk. When doing business globally understanding foreign laws, regulations, political and financial situations of other countries, and being knowledgeable of foreign markets, and regulations of the other countries are part of the business risk.
American standards influence multinational businesses by having policies like attendance bonuses and being on time and punctual and having open communication with employees with the open door policy, being uniformed as one, and having work life balance.
Response by Jarius:
On my view, the biggest risk is political risk as it has the potential to have the biggest impact and also quite unpredictable. Business risk is next biggest threat due to possible change in customer requirements and business models. While cultural risks can still be managed through better management and people practices. American standard should be the bed rock for forming the basic belief system and ethos in a foreign branch of the multinational. Building on these ethos, there could be minor adaptation of the basic principles to ensure consistency with local culture and societal norms.
Here is the original question asked by the professor:
Increased global interaction has been promoted by advanced technology in communication, ideas, and culture, which largely encourages and facilitates international trading. Businesses go abroad to seek better financial incentives, stronger networks, and markets of opportunities. But at the same time, the complexities in terms or risks involved in international operation are more than those for domestic firms.
Respond to the following in a minimum of 175 words:
Discuss how to manage cultural risks and other factors related to a foreign operation of a multinational business. Is cultural, business, or political risk more challenging to overcome than one of the others? Why or why not? How should American standards influence multinational businesses?