Essay by lorenaramosgUniversity, Bachelor'sA+, November 2014

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Chapter 1

3. How has the economic downturn impacted trends in protectionism and nationalization?

- The government took stakes in ailing industries, it verged on partial or full nationalization, through for the most part not forced. Some took the cue in a country in taking majority stakes in major banks, while in other countries exploded the economic crisis to establish more control over industries.

5. What means can managers use to assess political risk? What do you think is the relative effectiveness of these different methods?

- At the time you are reading this, what countries or areas do you feel have political risk sufficient to discourage you from doing business there?

Local managers in each country assess potentially destabilizing issues and evaluate their future impact on their company, making suggestions for dealing with possible problems.

This is a very effective method because the decision I make will affect my firm and my profitability in a good or a bad way, so it's necessary to investigate the country to know how it will affect it.

The Middle East is an area I think I wouldn't do business in.

8. Discuss the importance of contracts in international management.

What steps must a manager take to ensure a valid and enforceable contract?

- The importance of complexities arising from the differences in the legal systems of participating countries and because the host government in many developing and communist countries is often a third party in the contract.

Managers recognize that they will have to draft contracts in legal contexts different from their own, and they prepare themselves accordingly by consulting with experts in international law before going overseas.

Chapter 2

1. Discuss the concept of CSR. What role does it play in the relationship between a company and its host country?

- It's an important role in different countries because the country requires companies to do business right by following basic business obligations, and environmental sustainability, and the companies must follow this requires.

3. What does moral universalism mean? Discuss your perspective on this concept. Do you think the goal of moral universalism is possible? Is it advisable?

- To address the need for a moral standard that is accepted by all countries

I don't think this will ever happen because every country has their own culture and always at least one of them won't agree with something. It is advisable, but wont happen.

5. What is meant by international business ethics? Should the local culture affect ethical practices? What are the implications of local norms for ethical decisions by MNC managers?

- Refers to the business conduct or morals of MNCs in their relationship with individuals and entities.

The behavior is based largely on the cultural value system and the generally accepted ways of doing business in each country or society.

The norms are based on broadly accepted guidelines from religion, philosophy, professional organizations, and legal system. Managers base their ethical standards on those of the host country or those of the home country.