Subject Business International Business

Question

1."Risk Management" Please respond to the following:

Select a current business event from the international arena and determine which type of political risk coverage would provide the best protection against loss for an American company with a substantial investment in that country.
As more countries invest in foreign enterprises, the need for risk managers increases. Of all the types of loss arising from governmental or political sources, determine which type of loss could be the most potentially damaging to the company.

2."Use of a Specialist" Please respond to the following:

Discuss the advantages and disadvantages of hiring a specialist to arrange international risk management protection. Provide specific examples to support your response.
In accordance with today’s economic and political news, create a scenario in which a specialist in risk management would significantly improve the exporting / importing situation. Provide specific examples to support your response.

Solution Preview

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South Africa is experiencingveryviolent xenophobic attacks. Thelocalpopulationfeels disgruntled. Theybelievethatforeignbusinesspeopleandorganizationshavedominatedtheeconomy, taking away profits that should be going to the locals. As a result, they are attackingbusinessesowned by foreigners, destroyingandlootingproperty (Karimi & Magnay, 2015). Althoughtheattacks target mediumscalebusinesses, they are an indication of the underlying feelings of the locals towards foreignestablishment. Suchattacks can result in ...

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