Political Risk in International Business - Annotated Bibliography Example

Annotated Bibliography Name Course Tutor Date: Annotated Bibliography Elijah, S 2009, ‘Rethinking Ethical Issues in Global Business Environment’, KCA Journal of Business Management, vol. 2. Issue 2, pp. 16-34. Managers in globalized environments consider business ethics phenomenon as vital due to increased policies of liberalization and globalization. Business qualms, diversity push and changing demographics brought by globalization policy thus; resulting in corporate cultures of business less homogenous and competitive. Therefore, global environments need to be responsible enough when it comes to omission of ethical dilemmas experienced. Relativism, universalism, and imperialism ideologies are philosophies (schools of thought) aimed at solving these ethical dilemmas, but currently, they have not succeeded in doing so because business ethics is considered as self-regulatory. Across borders, managers need to integrate ethical dimensions in their business ventures by bearing in mind strategic process of decision-making. This is fostered by imposing fundamental moral principles that are universal for all participating countries. The article concludes by remarking how beneficial it is to build a relationship supporting customer satisfaction and value in organizations. Sustainable competition in an organization is achieved through the use of professional ethics and good practices in business. Fitzpatrick, M 1983, ‘The Definition and Assessment of Political Risk in International Business: A Review of the Literature’, Academy of Management Review, vol. 8, no. 2, pp. 249-254. This article gives varied explanations and definitions of political uncertainty with respect to integration of investment decision making process. It is an excellent article to study because it gives the reader a wide range of possibilities, and options to choose from, when it comes to understanding political risks from different angles displayed. An analysis and evaluation of the political situation shows how it is differentiated from the economic environment and examines the impacts of international business. The impacts mentioned contribute to political risks in international business and exemplifies this by using real time examples and how they affect investment opportunities. It distinguishes both external and internal factors of the environment that contribute to the emergence of political risk in an international firm. The relationship between the political environment and the political risks examined, show how they contribute to managerial aspects of decision making concerning investment projects. This information as ranked in the media, by using financial institutions and by their order of importance to show readers how political risks affect global business transactions. The article shows how the management process influences the political environment by considering investment decisions of different countries. The article gives room for further investigation of political risks associated to current financial times and considers the use of variables in explaining facts and figures displayed. Garcha, A ‘Diplomatic Culture or Cultural Diplomacy: The role for culture in international negotiation?’ Culture in international business affects negotiation processes and as a result, variables used during the process are considered, in this article, to give readers core aspects of negotiation by considering cultural differences. The author uses the US model in explaining all behavioral aspects by encompassing global elites, living lifestyles of cosmopolitans and common basis of language and expertise. National ideology and training are facets linked with the body governing determinants culture role in negotiations internationally. Holburn, GF & Zelner, BA 2010, ‘Political Capabilities, Policy Risk, and International Investment Strategy: Evidence from the Global Electric Power Generation Industry’, Strategic Management Journal, vol. 31, pp.1290-1315. Research shows that many multinational enterprises face greater risk policy since they invest less in their home country as compared to international investment. This article discussion of political capabilities theory facing multinational enterprises and ways in which, they can safeguard their sunken investments and how they can improve their political environment for their own benefit. Countries learn from their experiences and thus, are able to counter-attack their political problems and risk factor by managing organizational problems facing their organization. The article raises several hypotheses of constraints facing institutions in home-country and provides them with knowledge on how to handle the outcomes of policy-making decisions. In the report, it is clear that capabilities reduce deterrent effects of risk policy with regard to decisions of foreign entry. An example in this article relates to a power electric generation plant (first industrialized enterprise) that gives empirical support for predictions provided by authors. The article concludes by stipulating how competitive global pressures affect the market and nonmarket multiple dimensions. Policy risk is affected by global pressures influencing international investments. By illustrating how they cannot reproduce such performance in other countries and heterogeneous capabilities. Hendrix, SE, ‘Political risk and international business’, International Trade Issues, Retrieved 26 March 2012 from The website is primarily for business executives to express their views and opinions on their experiences and opinions on business transactions matters in the global market. This site has given business people ways and means of interacting with each other on a business level by looking at political pressures they face during transaction. The article provides readers with ways in which exporters can use in avoiding political risks. They provided solutions of political risks reduce pressures associated with international trade and therefore, give alternatives on how to manage global problems. Another issue under consideration in this article is legal problems with regard to insurance of political risks. The issues under discussions are connected with given concern since it enlightens readers on general issues encompassing political risks in international transactions undertaken by organizations. The website also puts into consideration other aspects relating to risks associated with international business therefore, amplify knowledge of business transaction and risk to traders. INSEAD, Cross-cultural negotiations: avoiding the pitfalls. Retrieved 30 March 2012, from Educational and religious backgrounds are aspects considered when engaging in negotiations on a cross-cultural level. This information helps in understanding how one thinks and communicates during negotiation time and thus, fostering the use of persuasion techniques. Tactics of negotiators recommend the use of exploration, adjustment and preparation strategies in building a system that works for both parties in order to foster a relationship that is long-term. Negotiators are liable to accommodate cultural aspects on an international level to attract more customers and meet their values and demands. Leung. K., Bhagat, R., Buchan, N, Erez, M & Gibson, C 2005, ‘Culture and international business: recent advances and their implications for future research’, Journal of International Business Studies, vol. 36, no. 4, pp.357-378. This literary journal article gives an analysis on multiculturalism in a managerial context by looking at convergence and divergence questions of culture; and their implications for international business. A two model cultural change are presented by the authors and include the multi-level idea dealing with the global culture and multilayer, which consists of deeper level values, core essentials if basic assumptions and superficial behaviors. These authors have discussed Hofstede’s work dimension in depth by relating them to cultural static traits. This article gives readers future implications associated with investing in foreign markets and thus, encourages investors to monitor their country of destination first. Leng, CY 2010, ‘How Does National Culture Impact on Consumers’ Decision-making Styles? A Cross Cultural Study in Brazil, the United States and Japan’. Brazilian Administration Review, vol. 7, no. 3, pp. 260-275. The author investigates the relationship between consumer decision-making styles and national culture by examining cell phones purchase. This empirical article also looks at Hofstede’s cultural dimensions, Sproles and Kendall’s inventory style for consumers purchase and hypotheses that give information on the country in question. This analysis helps in examining impacts of cultural differences on consumers purchasing behavior with regard to decision-making process. This articles gives room for future research to be conducted and thus, enables readers have a view of how to handle future purchases made by consumers. Podrug, N Influence of National Culture on Decision-Making Style Cultural background need to be understood by international investors because it reduces the failures and difficulties of decision making in international business environments. Decision making processes for any international business entail the understanding of culture for that country. This reduces policy risks encountered by foreign investors. This article gives clear descriptions of how to handle cultural issues faced by international organizations. Rawwas, M 2001, ‘Culture, personality and morality. A typology of international consumers’ ethical beliefs’, International Marketing Review, vol. 18, no. 2, pp. 188-209. International marketing, undertaken by foreign consumers, needs to understand their ethical beliefs since it affects the outcomes of strategic expansion of the market. In the article, ethical beliefs are classified according to personality and ethics by use of cultural taxonomy displayed by Hofstede’s. The foreigners engaging in international marketing have different personality types; because they have different beliefs and thoughts. As a result, consumers in foreign markets need to develop a culture that accommodates ethical values and beliefs of their host country. This promotes a cordial working relationship and enables them engage in business that is productive. Schaffer, R, Agusti, F & Earle, B 2008, International Business Law and Its Environment, Cengage Learning, New York. This book provides a distinctive thematic strategy on understanding international business law. One learns quickly and effortlessly the two types of law (public and private). The book clarifies intellectual property and direct foreign investment issues in a simple way. International investment entails many challenges, but this book, helps stabilize these challenging legal issues. Also, economies of nonmarket countries, their political and economic issues are dealt with in detail giving the reader an overview of problems commonly encountered. By looking at the global scale, the authors, have focused on international business transactional aspects expected by emphasizing on legal, political, economic and cultural environment; because they affect managers decision making process. Chapter one of the book gives detailed information on international business by looking at issues like planning for international transactions; types of risks (exchange, political and currency). The authors have also described ways in which one can manage these risks in international business commerce and gives room for further research to be undertaken. The book gives examples relating to current business situations and thus, for students planning to explore on risks in international business, is well informed and understands the extent of global challenges affecting foreign investors. Scholtens, B & Dam, L 2007, ‘Cultural Values and International Differences in Business Ethics’, Journal of Business Ethics, pp. 1-12. Industrialized countries also analyze ethical policies in trying to find out whether culture plays a significant role when explaining differences of a country. The article investigates topics closely related to business ethics and includes policies of human rights, bribery and corruption governance and lastly, the communication, comprehensiveness and implementation of ethics codes. Every country has its own code of ethics and thus, by looking at different countries, readers are able to understand how the codes of ethics apply and their importance in governing international trade. By applying Hofstede’s cultural indicators in such situations, avoiding individualism and uncertainty positively enables traders associate with ethical policies. On the other hand, distance of power and masculinity and negative aspects affecting ethical policies of a country. This analysis aimed at exploring how a firm’s ethical conduct associates with societal norms and cultural values stipulated by Hofstede. Zhu, P & Wang, J Cultural Values Carried in International Business Homepages that fail to accommodate the needs of Cross-Cultural Audiences, Companies engaging in international business have adopted the use of websites as a means of communicating and reaching their target audience. However, most of them lacks the cultural aspect of accommodating their cultural values and needs and thus, has led to their downfall in entering global markets. Translators are required to explain to targeted market country on what is posted on the website of the company, and this poses as a major problem for foreign investors. Therefore, it is paramount for international businesses to consider cultural values and or expectations of targeted markets. In this case, China and USA cultures are used in determining problems arising by adopting Hofstede and Gesteland’s dimensions. As a result, foreign investors need to put into consideration cultural values and expectations when designing a website in ensuring that it suits the needs and demands of their target group. The article also describes the needs of Chinese and Americans and thus, encourages international investors on how to meet their audience values and cultural language by employing uncomplicated designs that are easy to operate and understand. Read More