This is Unit 7, which is also Chapter 5. I have made notes for semester test one and I made very visual summaries of the notes for semester test 2. Although they look very summarised, I have used past papers, lecture slides, lecture notes, the textbook and online notes to create these aesthetic not...
Nationalisation: a process in which a
government takes control or ownership
of a company or industry.
- Belief that gov can manage a
public good/ necessity better
than private, profit-driven sector.
Privatisation:
Privatisation: selling of government
owned property to the private sector
Government Stability and Protection
Businesses prosper most when there is a stable government with policies that are permanent or
that change only gradually. Business likes peace and predictability because they provide stability
and safety for assets and people.
, Country Risk Assessment and Countermeasures to Threats
Country Risk Assessment (CRA): an assessment of a country’s economic situation & politics to
determine how much risk to employees, property, + investment exists for the firm doing business
there.
Country risks can come from political factors (wars, revolutions, coups), economic and financial
factors (balance-of-payments deficits, high inflation rates, loans that are unpaid or in arrears),
labour conditions (labour productivity can be low, labour unions may be militant), legal factors
(laws may be changed that govern taxes, currency convertibility, tariffs, quotas, labour permits).
The types of information a firm will need to judge country risks vary according to the nature of its
business and the length of time required for the investment, loan, or other involvement to yield a
satisfactory return.
Available countermeasures:
Know country and region so risk-assessment is realistic
o Real-time country-by-country risk analyses are available and must be used so that
managers have a realistic view of the possible dangers in their environment
Outsourced skills as needed to cope with crisis
o Outsource businesses who specialise in coping with crises once they occur who will be
able to assist in providing increased security, medical evacuations, hostage negotiations,
and high-stake rescues
Train for daily living skills (evasive driving, avoidance of routine, hardened cars)
o Employee training programs can provide a measure of defence against threats: local
awareness programs for executives and their families (how to vary routes and be
cautious and aware of your surrounding) and antiterrorism training courses for executives
(covering defensive driving techniques, escape tactics, and crisis management)
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