“It is now possible for more people than ever to collaborate and compete in real time with more people on different kinds of work from different corners of the planet and on more equal footing than at any previous time in the history of the world using computers, e-mail, teleconferencing and dynamic software.”
Thomas L. Friedman, Author, The World is Flat
Political risk: probability that governmental decisions or events in a country will negatively affect the long-term profitability of an investment.
The firm must get these benefits.
firm taps into country values for product customization
marketing campaigns tailored to country
firm understands local distribution system
extending global brand name
The firm has to deal with different languages, cultures and values.