***International Business Discussion Question*****

Country Risk Decision Factors

Suppose you get a job at Aoki Corporation, a firm that manufactures glass for industrial and consumer markets. Aoki is a large firm, but has little international experience. Senior managers are considering a plan to move Aoki’s manufacturing to China, Mexico, or Eastern Europe, and to begin selling its glass in Latin America and Europe. However, they know little about the country risks that Aoki may encounter. Describe how each of the following factors might contribute to country risk, in the identified countries, as Aoki ventures abroad: foreign investment laws, controls on operating forms and practices, and laws regarding repatriation of income, environment, and contracts?