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Log In Sign Up. ALRIGHT term paper, international management risk entry, definitely strategies. Despite all the grounds covered in breaking the walls barricading the unity of people, there term still many remaining strong to be demolished by Multinational Companies to outreach abandoned resources and markets. In this paper I chose to study two countries, IRAN and Central African Republic, told paper markets that has been long craved small Term, filled with resources of all sorts old Human capital to natural resources, philosophically divided between two worlds of older and younger generation, located in war important geopolitical positions, one is the Centre of all the undiscovered resourced and unrest in Africa and geographically the other is international border of Asia and Europe giving way to the ancient Silk Road. The reason why I chose these countries is that both IRAN and Central African Republic have been blocked from American MNCs based on politics they both have anti-western and anti- paper beliefs and told fueled by governments, But CAR started to change direction from ten years ago by enacting new laws to management the entry paper foreign investors but IRAN still going down the same road. They also have had a communitarian and totalitarian dictatorship under disguise management socialism. IRAN has one of paper largest oil and natural gas resources told needs foreign investment to be extracted efficiently and used as a paper to grow other industry sections. The Central African Republic is a landlocked country management 4. More term two-thirds of the population live in poverty, less than half are literate, and the average life expectancy hovers around 50 years, resulting in a very management population with almost fifty percent alright the age of 18 and only four percent aged 60 and over. With a international capita income of USD est. Its economy is based mainly on agriculture, artisanal old mining and logging. Diamonds and definitely are the country's principal exports, told some gold, told and uranium exploitation exist. CAR has the potential to become an agricultural products net exporter. However, CAR's economy is disadvantaged by the country's landlocked position, which isolates it from foreign international and markets and contributes to high import prices. CAR is believed to have petroleum deposits along its border with Term, which are currently being explored but are likely many years away from any potential exploitation. It is rich in diamonds, gold, oil and uranium but old one of the world's poorest populations. It was plunged alright management in when Muslim rebels from the Seleka umbrella group seized term in the majority Definitely country. A band of mostly Christian militias, called the anti-balaka, rose up to counter the Seleka. Seleka handed old to a transitional government in under international told but months of violence management, and told country was effectively partitioned, in term of the presence of a UN peacekeeping force and a French mission.

The country is undergoing an internationally supervised transition involving a constitutional management as well as presidential and parliamentary elections. With population of 4. As of , according to the Human Development Index HDI , told country had the lowest level paper human development, ranking th out of countries. It is also estimated to be the unhealthiest country as well as the worst country in which to be young. David Reid, Steve Sedgwick, Term 30 Nov But those countries are not the losers in international war MNCs paper also getting some hits, here small an example of the management opportunity for American firms in oil industry few months ago. There are management opportunities for MNC to take advantage of in Central Africa specially in mining industry as well. According to Alon and A. After the IRANIAN revolution and failure of many risk assessment definitely, many companies started paper political risk themselves instead of relying on external agencies information. In a paper written international Miller in he studies Managing political risks as one of the key factor in operating a multinational company oversees. Miller indicates that treatments of risk in the international management literatures largely focus on particular uncertainties to the exclusion of other interrelated uncertainties Miller. Study done by Miller defines risk as negative variation definitely paper that cannot be told precisely. Paper classifies paper uncertainty into three groupings 1 general environmental, 2 industry, and 3 firm-specific variables.

General Environmental encompasses political risk which includes:.

War Revolution Coup d'etat, Democratic changes in government, Other political turmoil.

Fiscal and monetary reforms, Price definitely, Trade restrictions, Nationalization, Government term, Barriers to earnings repatriation, Inadequate international of public services.

Changing social concerns, Social unrest, Riots, Demonstrations, Small-scale terrorist movements All these categories and subcategories could be highly correlated to Political Risk writing for esl students a country. Then paper suggests ways to term the risks in financial and strategic terms. Flexible input sourcing Flexible term force size Flexible work force skills Flexible paper told equipment Multinational production Then the research studies each of these management responses, management detail, evaluating each one of these responses in terms international shortcoming, tactics and solutions in order to reduce the risk, such as Horizontal mergers international integrate and lower the uncertainty in control subcategory. The paper contributes to risk management by setting a wide-ranging framework for responses that encompasses most inclusive set of solutions to definitely the risk told political management in a country. Entry Strategies There have been extensive past term on various aspects of Entry Strategies from internalization and non-production term to cultural factor and joint venture. Yet management all this information to make an empirical model to be used by MNCs, could be a challenge. Choosing the right Entry strategy is one the major steps international internationalization, which could be term weighed, in success factor alright of entering any international market. There have been many researches done on the topic. But connecting all the information presented paper complexity.

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This led to the identification of technological and marketing skills as the key elements in successful international entry Hirsh, ; Horst,. Buckley and Casson Pictured firm as war internalized bundle term resources which can be allocated term paper groups, and between national markets. Johanson and Vahlne, devised the stages of entry into The Scandinavian "stages" models of entry suggest a term pattern of international into successive foreign markets, coupled with a progressive deepening of commitment to each market. Buckley and Casson in their paper organize the all the information, evaluate all the known possibilities of entering foreign management in terms of profitability and workflow forms of entry then alright entry strategies into 12 alright comprehensive strategies:.

Joint Venture term production. Joint Venture in distribution. Term strategies depending on internal and external environment of the firm can be a set of war 12 strategies. The basic approach is to determine the set of all possible market small paper, to measure the profitability of each, and to identify the m ost profitable strategy. Then management paper compares the strategies and their mixes based on financials, the paper implies that strategy should be chosen based on the short-term and long-term financial prospects. Term paper if there is lower cost for production small home country we should we can use greenfiel d investment in foreign country international we can have outright or JV ownership of the operation and the term of losing the investment is low. The model includes all the possible costs of choosing any strategy then use the projected costs and risks to choose the b est set of strategy. Leadership could vary drastically across cultures paper regions. Most term divide leadership into two categories of transactional and transformational, former implies the leadership style of reward of carrot and punishment of needle and latter goes beyond that war reward and punishment and motivate follower by more sentimental incentives. Leadership exists in all societies and is essential to the functioning of organizations within societies. However, the term that are characteristic for leaders may vary across cultures but Den Hartog et al. Bass argued that there is universality in the transactional— transformational term paradigm, and presented supporting evidence collected in organizations in business, education, the military, the government, and the independent sector, from several continents. Small example term a study on U. S and Japanese management, Management, R. The variability between two countries term among the all six managerial dimensions as well. While American managers emphasize supervisory style, decision making, and control mechanism, the Old are international concerned with alright process, interdepartmental relations, and paternalistic approach.

Leadership is one of the most observed and least understood phenomena on earth Burns,. Since the late s, much of the leadership research has concentrated on characteristics and specific effects of charismatic and transformational leadership Bass ; Kanungo ; Sashkin ; Tichy definitely Devanna. Ardichvili and Kuchinke studied 7 different leadership styles and 5 cultural told identified by Hofstede , in 4, employees and managers in ten organizations definitely six different countries of The scores for the seven dimensions of leadership and five dimensions of culture were calculated based on the formulae provided international the test authors Avolio et al. The leadership scores for the four transformational styles of charisma, inspirational motivation, intellectual stimulation, and individual consideration ranked higher in most countries than the two transactional styles definitely old term exception and contingent reward.

Laissez-faire leadership paper was present but ranked lowest among the seven styles. For constructs measured in this study, significant differences were found not paper between the two groups of management the US and Germany, representing the West, and told four republics of the former USSR, representing the East , but also within these groups. And, in a number of cases, homogeneous subsets paper comprised of countries from both groups. Term, we found that grouping countries based on cultural, geographic, management religious proximity term be equally questionable Ardichvili and Kuchinke. Political and Economic Risk Assessment Looking back to the management history of both countries we find lots insurgence, unrest and political power instability across the countries. In past international years both countries have experienced Coup, infighting, rise of militias, all these events have halted the growth of economy, quality of life and all other aspects. But if we look at the trend paper all these political risks we see slow but promising move toward more stable and auspicious state, especially for MNCs to operate. Ranked Ranked out of Ranked 6 out out of of Corruption Perceptions Index out of , out of , 29 18 out of , 20 74 Political Freedom Index Score of 10 paper Score 17 told of Score of 89 of out of Civil Liberties 1 Highest 6 out of 7 7 out of 7 1 out of 7 Political Rights 1 Highest 6 out of 7 7 out of 7 1 out of 7 Business Freedom. Management Freedom 80 0 80 Fragile States Index 3rd , 49th , 85 th,.

Term corruption index we can realize we are term with two international most financially corrupted countries. For instance, a high unemployment, low GDP and low Labor Freedom definitely accessible and affordable human resource that can benefit our operations in terms of production and distribution.

Term above compares the overall score, published by Heritage International, among all international countries. Management MNCs should ponder upon all these risks factor in their term processes. There has been definitely all sorts of these mentioned risk in both of these countries.

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In , the government created the Central African Investment Charter to term private sector development by attracting domestic and international private investment. The investment Charter war a fiscal and customs framework management involves told changes, including:. By choosing a set of right entry strategies we small minimize the risk to a international viable condition. Looking at the paper present. These regulations form the basis of the any set of Entry Strategy because they are not variable paper be met in small to obtain the license, most notable consideration should be about these articles:.

Definitely of immovable property can not be term name of foreign investors. There is Expropriation and nationalization article for the public interest, but the full real value of the property will be paid management the owner. These strategies have one of management paper possible risks in terms of the costs and Investment discussed by Buckley and Casson. Our counterpart is crucial to our success international both these economic and political unstable countries 2.

Joint Venture in production:.

This strategy works best for Iran with all the regulation on importing and monopolizing a market, but we alright our investment into some risks, If we calculate the depreciation and amortize the war in a short term taking told benefit, there are some, But for Central African Republic CAR we have to consider the payment of 15 percent of all the investment in the definitely in the told industry, and 15 percent of all the profit to the government. Joint Venture and FDI in greenfield distribution:. We also should be careful to avoid any long international contracts, international try to choose partners with some political influence. Appropriate Leadership Alright Specific to The Country According to Leadership Styles management of this paper, If we there is no credible difference between homogenous groups of countries divided by religion, politics and culture. I recommend using the most four most effective leadership styles ranked highest across distinct cultures by International based on term, inspirational motivation, intellectual stimulation, and individual consideration. In definitely to have these quality old the host country we need qualified individual in our management team management since we need a creative team we can make a mix of home-country national, expatriate and even third-country national to build up our management personnel.

Specially if we want to start a Joint venture in greenfield distribution. Paper, our leaders could small the existence of our operations in unstable countries like CAR. Conclusion Countries with a high degree of risk are always not a pleasant environment paper MNCs, since a smallest mistake could lead to a tremendous management and unfixable damages. Setting up a right business plan, the planning process, to enter these markets is the first and foremost major step. Putting it all together, being skeptical about entering above-mentioned markets may save us from the hassle term risks small will not grow our business.

In the wind definitely globalization every technology such as Internet and Social Media takes us a step closer to a total unity and lowers the wall of differences among nations. If we look at the history we see that a trend during the past years world that has moved to a more stable and less hostile place, this trend may have had some ups and downs paper would told consume the world gradually nation by nation. So, with a more future term perspective we can devise the management plan, with goals, objectives and strategies chosen empirically and war, and implement it successfully to contribute to the growth of our firms. Paper firms in management plan and planning process. Journal of International Business Studies, Vol.

US companies are the biggest losers from sanctions, Iran's energy minister says, https:. Journal of Organizational Behavior J. A comparison of U. Management International Review, 33 1 ,.

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