Académique Documents
Professionnel Documents
Culture Documents
Global Firms
Business Environment
Economic Environment;
Political Environment;
Cultural Environment;
Economic Environment
Economic System :
Centrally Planned Economy : where dec-
isions regarding production and distribution
of goods is taken by a central authority.
Human Resources:
Political Risk :
Conflict of Interest:
The interest of MNCs is normally different from
interest of the host country.
The MNCSs manifest in the maximization of
corporate wealth;
The host country is evident in the welfare of
economy;
Example :
Private Insurance
Government Insurance
Example
In 1993, Motorola won bid to install,
operate and maintain cellular telephone
service in Nicaragua.
Nicaragua has a crumbling infrastructure
and a very poor land-line telephone
system.
Motorola’s cellular service was one of the
biggest private foreign investor.
Example :
Getting Credit 36 84 84 84 7
Protecting Investors 33 83 83 64 5
1. Individualism /Collectivism:
In individualistic countries (France,
Germany, South Africa, Canada, etc.),
people are expected to look out for
themselves.
shells of coconuts.
3M responded by making its cleaning pads
brown and shaping them like foot.
Employ locals to gain cultural knowledge
Murabaha Contract :