Global Managerial Economics

Essay by MELONKERBUniversity, Bachelor'sB+, January 2009

download word file, 3 pages 3.0

Discuss the corporation's business activities in a foreign host country.

Corporations run their businesses with the highest caliber individuals at the forefront when dealing with foreign host countries. The corporation understands that they are viewed as ambassadors of their host country and will reflect greatly on their business and in many terms the political aspect of the each country. For United States companies and their agents doing business outside the United States must comply with the provisions of the Foreign Corrupt Practices Act (FCPA). The FCPA prohibits giving or offering anything of value to a foreign official to induce the recipient to misuse his or her official position to obtain or retain business or secure some improper advantage. "Anything of value" is defined broadly, and includes gifts, money and services. The prohibition extends to the official's friends and family members, and includes political parties, party officials, and candidates for political office (Spero and Hart, 1997).

Discuss the comparative advantages for the firm to operate in the host country. A large advantage for the firms to operate in host country is for the fact of raw material and sourcing of goods in comparison of having to outsource all required pieces of a product within the business. Foreign investment tends to occur more frequently among firms that compete in a market or industry of small numbers of sellers in the home country. This means firms in highly concentrated industries such as oil, chemicals, automobiles, semiconductors or banking have been observed to follow each other toPHASE 2 INDIVIDUAL PROJECT 2 3foreign locations once one of the small numbers of sellers makes the first move (Guillen, n.d.). What were the environmental issues facing the firm, host community, and/or workers? How was the issue resolved? The growing concern of economic issues faces most industrial countries...