ï»¿KEY TERM AND WHY CHOSEN
Sources of Risk in Global Business- Global businesses are exposed to a number of risks. The interest in this subject is purely academic. I once worked for a company that outsourced a large percent of its labor to China. I often hear about the tax breaks and cheap labor found in other countries, which also peaked my interest. Surely, companies face obstacles when decided to deal globally, choosing this topic allowed me to research those obstacles and the risks companies face when dealing globally.
EXPLANATION OF THE KEY TERM
Sources of risks faced by global businesses include political, economic and cultural climates. Economic risk is the chance that ...view middle of the document...
In Managing Political Risk in Global Business, Jones and Lubinski provide the history of political risk in global business, dating as far back as World War II. An example of â€œcloakingâ€ by German companies is used to illustrate political risk in its early years. Sourcing in global health supply chains for developing countries explores the importance of effective chain supplies in developing countries. The author discusses the challenges associated with sourcing and purchasing vaccines in developing countries. Both political and cultural risks can interfere with the vaccines supply chain. Global Risk Factors (Rogoy,2006) explores the different risks associated with global business. It explores the importance of technology in global business. An example on how different climates affect machinery was particularly interesting. The article also explores other economic risks such as health, conflicts, and incorrect management decision. Businesses who operate globally are exposed to a wider variety of risks than those who operate domestically. Identifying and mitigating economic, political, and culture risks are integral to the survival of the business.
Jones, Geoffrey & Lubinski, Christina. "Managing Political Risk in Global Business: Beiersdorf 1914â€“1990." Enterprise & Society 13.1 (2012): 85-119. Project MUSE. Web. 11 Sep. 2015. . Retrieved from: http://muse.jhu.edu.ezproxy.liberty.edu:2048/journals/enterprise_and_society/v013/13.1.jones.html
Ila Manuj. "Risk Management in Global Sourcing: Comparing the Business World and the...