Response to the following:
Can political and economic risk be managed when investing in another culture? If so, what methods of managing risk would you use? How would you determine the effectiveness of your chosen methods of managing risk?
PLEASE EXPLAIN WHETHER YOU AGREE WITH MY CLASSMATE RESPONSE TO THE ABOVE QUESTION AND WHY?
CLASSMATE'S POST:
Yes, political and economic risks can be managed when investing in another culture. There are a few methods that can be utilized for managing those risks but first those risks must be identified. Effective communication is a key factor in any risk situation and the risks should be thoroughly researched and identified prior to the execution of a plan. Being proactive and training employees and management to adjust their strategies and management styles is a good way to start. Keeping up to date on current political and economic factors on a continual basis and being aware of ethnic differences in the culture that is being moved to will help to keep a flexible dynamic while establishing processes for a risk management. The effectiveness of these methods would be determined by a vigilant oversight process that is proactive. Looking at the processes that others have utilized or are utilizing will also give a good indication of what is working and what is not.