Discussion Post
• One of the most common entry strategies for MNC's is the joint venture. Why are so many companies opting for this strategy? Would a fully owned subsidiary be a better choice?
• In what way do the concepts of formalization, specialization, and centralization have an impact on MNC organizational structures?
• What types of political risk would a company entering Russa face? Identify and describe three. What types of political risk would a company entering France face? Identify and describe three. How are they similar? How are they different?
• What are some of the challenges associated with managing alliances? How do host governments affect these?
• If the company in question 2 finds a major market for its products in Europe and decides to expand into Asia, would you recommend any change in its organizational structure? If yes, what would you suggest? If no, why not?
• In what way do these concepts of formalization, specialization, and centralization have an impact on MNC organizational structures? In your answer use a well known firm such as IBM or Ford to illustrate the practical expressions of these three characteristics.
• Most firms attempt to quantify their political risk, although they do not assign specific weights to the respective criteria. Why is this approach so popular? Would the companies be better off assigning weights to each of the risks being assumed? Defend your answer.
• What are some of the challenges associated with managing alliances? How do host governments affect these?
• One of the most common entry strategies for MNCs is the joint venture. Why are so many companies opting for this strategy? Would a fully owned subsidiary be a better choice?
• A small manufacturing firm believes there is a market for handheld tools that are carefully crafted for local markets. After spending two months in Europe, the president of this firm believes that his company can create a popular line of these tools. What type of organizational structure would be of most value to this firm in its initial efforts to go international?
• How has terrorism impacted foreign interest in Iran and Saudi Arabia, considering the vast oil reserves that are there? How have terrorist attacks affected political relationships between countries such as the United States and Russia?
• What are some of the challenges associated with managing alliances? How do host governments affect these?
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.