Question

Respond to the following in a minimum of 175 words:

Discuss how to manage cultural risks and other factors related to a foreign operation of a multinational business. Is cultural, business, or political risk more challenging to overcome than one of the others? Why or why not? How should American standards influence multinational businesses?

Answer 1

ANSWER :

A ‘Multi-National Corporation’ also called M.N.C is an organization that renders its administrations/items to different nations while having a base in its own nation.

The nation where it has its principle head office is called 'Parent Country' and the representatives of that nation are alluded to as 'Parent nation nationals'.

The nation/nations in which it has branches is called as 'Host Country' and the representatives that have a place with that nation and work for the equivalent MNC are called 'Host nation nationals'.

As organizations keep on growing their points of view to fresher nations through globalization, different hazard factors become an integral factor.

One of such is the Cultural components. Every nation has an alternate culture, customs and conventions. It may require some investment for the parent nation nationals to conform to the host nation culture.

This can be overwhelmed via preparing the parent nation nationals and getting them acclimated with the way of life of the host nation.

A few representatives may even go into social stun. To keep away from this, the MNC must offer enough enthusiastic help and advising consistently to such workers.

Incapable correspondence also can represent a danger to the MNC. It can bring about misconceptions in the clients/customers of the host nation.

Proper work environment behavior must be kept up per the way of life of the nation to keep the social dangers related with the activity of worldwide companies under control.

Out of social, political and business dangers, Cultural dangers are a lot harder to defeat on the grounds that the political and business dangers can be dealt with effectively by the high level administration of the MNC.

In any case, social dangers must be taken care of with most extreme consideration since it is a touchy issue. Any hiccup in this issue could prompt a weakening of the connection between the clients and the MNC. This can prompt a great deal of issues.

The American guidelines of doing worldwide business incorporate worldwide commitment, and their member deals are overpowering.

They give their parent nation nationals working in the host nation with suitable preparing and advancement openings. They additionally remunerate the host nation nationals well and show no separation.

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