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Identify and describe four means of political risk adaptation. Give a cited source for each mean. I
know what the four means are of political risk adapation the problem I'm having is where do I
find websites to give examples of these. If someone could point me to some sources that I can
relate with these means.
The four means of political risk adaptation are:
1. Equity sharing includes the initiation of joint ventures with nationals (individuals or those in
firms, labor unions, or government) to reduce political risks.
2. Participative management requires that the firm actively involve nationals, including those in
labor organizations or government, in the management of the subsidiary.
3. Localization of the operation includes the modification of the subsidiary’s name, management
style, and so forth, to suit local tastes. Localization seeks to transform the subsidiary from a
foreign firm to a national firm.
4. Development assistance includes the firm’s active involvement in infrastructure development
(foreign-exchange generation, local sourcing of materials or parts, management training,
technology transfer, securing external debt, and so forth).
Solution
The political risk adaptation are:
Example –person J and person K are associates. K wants to purchase a house but can't pay for
the place she wants on her own. J agrees to associate with her in an equity sharing arrangement. J
won't live in the property; he would simply be an equity investor in it. K will live in the
property. K finds a two room home and they make a decision to purchase it for $1,000,000. J
puts $200,000 cash down as down payment. K puts $50k down and takes out a loan for
$750,000. J's ownership percentage is 20% and K's is 80%.
The equity division term would be for 5 years. At end time K either has to buyout John for hit
total capital contributions ($200,000) plus 20% of the approval of the property or they will agree
to sell the possessions on the open market with J receiving 20% of the proceeds and K’s 80%.
Participative management allows workers to take liability, responsibility and authority over work
done for a company.
British Airways is another great example of participatory management. for the period of
economic downsizing, employees’ decisions helped them cut annual cost of their operations by 4
million pounds.
Satyam is another great example.
Localization of operations - modifications to the company's managing style, organization name,
etc. to accommodate national issues;-
Example - KFC, Samsung, Apple

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Identify and describe four means of political risk adaptation. Give .pdf

  • 1. Identify and describe four means of political risk adaptation. Give a cited source for each mean. I know what the four means are of political risk adapation the problem I'm having is where do I find websites to give examples of these. If someone could point me to some sources that I can relate with these means. The four means of political risk adaptation are: 1. Equity sharing includes the initiation of joint ventures with nationals (individuals or those in firms, labor unions, or government) to reduce political risks. 2. Participative management requires that the firm actively involve nationals, including those in labor organizations or government, in the management of the subsidiary. 3. Localization of the operation includes the modification of the subsidiary’s name, management style, and so forth, to suit local tastes. Localization seeks to transform the subsidiary from a foreign firm to a national firm. 4. Development assistance includes the firm’s active involvement in infrastructure development (foreign-exchange generation, local sourcing of materials or parts, management training, technology transfer, securing external debt, and so forth). Solution The political risk adaptation are: Example –person J and person K are associates. K wants to purchase a house but can't pay for the place she wants on her own. J agrees to associate with her in an equity sharing arrangement. J won't live in the property; he would simply be an equity investor in it. K will live in the property. K finds a two room home and they make a decision to purchase it for $1,000,000. J puts $200,000 cash down as down payment. K puts $50k down and takes out a loan for $750,000. J's ownership percentage is 20% and K's is 80%. The equity division term would be for 5 years. At end time K either has to buyout John for hit total capital contributions ($200,000) plus 20% of the approval of the property or they will agree to sell the possessions on the open market with J receiving 20% of the proceeds and K’s 80%. Participative management allows workers to take liability, responsibility and authority over work done for a company. British Airways is another great example of participatory management. for the period of economic downsizing, employees’ decisions helped them cut annual cost of their operations by 4 million pounds. Satyam is another great example. Localization of operations - modifications to the company's managing style, organization name,
  • 2. etc. to accommodate national issues;- Example - KFC, Samsung, Apple