Chapter Discussion

Identify the ideological forces that affect business and understand the terminology used in discussing them.
We discussed capitalism, communism, socialism, conservative, liberal, right wing, and left wing.

Understand that although most governments own business, they are privatizing them in growing numbers.
Even governments that consider themselves capitalist and conservative own some businesses. But almost all governments—with the United States lagging behind—are privatizing and getting out of business.

Explain the changing sources and reasons for terrorism and the methods and growing power of terrorists.
The former Soviet Union and Eastern European satellite countries no longer finance, train, and shelter terrorists, but they have been replaced by countries such as Iran, Iraq, Libya, North Korea, and Syria. Radical Islamic fundamentalists represent a growing threat with their hatred of Christians, Jews, secularists, democrats, and the West generally. They are infuriated by the peace moves between Israel and its Arab neighbors. Nuclear terrorism is a new fear, as security has failed at nuclear sites in the former Soviet Union and enriched uranium is being stolen and smuggled around the world.

Explain steps that traveling international business executives should take to protect themselves from terrorists.
Before international business executives travel abroad and after they arrive in the host country, they should take steps to protect themselves from terrorists.

Understand the importance to business of government stability and policy continuity.
Business can rarely thrive in a country with an unstable government or rapid, drastic policy changes. See the section about Bolivia.

Discuss the power sources of international organizations, labor unions, and international companies.
Large international businesses have political power, as do labor unions and international organizations such as the UN and the EU.

Understand country risk assessment by international business.
Country risk assessment is now considered a necessity by most international businesses before they commit people, money, or technology to a foreign country. CRA involves evaluating a country’s economic situation and policies as well as its politics.