Kindly give full answer as its a revision for examination Wh

Kindly give full answer as it\'s a revision for examination

What type of political risk would a company entering Russia, Iran and France face? Identify some of the challenges associated with managing international alliances? How do host governments affect these? Use examples, case studies and personal experience liberally.

ased Globalisation and interaction between differing 1. As a result of incre and economies at different stages of development, ethical issue cultures have become more Discu management and MNCs today. Through the use of examples, evaluate specific ethical issues that have confronted MNEs and the solutions that were implemented relevant. Discuss and examine ethics in international some of the major ethical issues and problems confronting

Solution

In Russia, there is a government with socialist philosophy. So, it will lack promotion of private property rights. With one party in dominance, there is a less scope of political instability, but lack of willingness to protect the organization its intellectual property will create political risk. In Iran, there is government stability, but there are international sanctions, pressure from the international rights and interest groups as well as the conflicts between different communities in the country of Iran. These issues constitute the political risk in Iran.
In France, there is a democracy and private property rights are promoted. Further there is the stability in the government. Though, the conflict between the groups having Islamic background and other communities, create a political risk.

Some of the challenges are as follows:
1.   Building a balance between the two culture posing significant difference from each other
2.   Difference in language, degree of indulgence and orientation towards the family or individualism
3.   Difference in the professional code of conduct and organizational culture
4.   Different time zone in the parent countries of the participants of the alliance

Host government affects the strategic alliances in following ways:
1.   Formation of guidelines and regulatory framework to govern the international alliance
2.   Degree of inclination of laws towards the organization of host country
3.   The rule of exit when the strategic alliance achieves its objective and repatriation of income and transfer payment
4.   Laws related to the protection of intellectual rights and other private properties
5.   Government regulations related to the hiring decisions of new employees