Identify the ideological forces that affect business and understand the terminology used in discussing them.

Ideological forces include capitalism, communism, and socialism. The chapter discusses terminology (conservative, liberal, right wing, and left wing) used to describe various political positions.

Discuss the fact that although most governments own businesses, 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The former Soviet Union and Eastern European satellites no longer finance, train, and shelter terrorists, but they have been replaced by countries such as Iran and North Korea. Radical Islamic fundamentalists represent a growing threat. 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.

Figures 9.4 and 9.5 offer several suggestions. For example, Figure 9.4 suggests keeping travel plans confidential. At the same time, it is important to keep the firm aware of where business travelers are. This is true in case of natural disasters as well. One recent problem is that, with the presence of discounted tickets, some travelers stop using a travel management service. When a plot to blow up planes at London's Gatwick Airport was uncovered in August 2006, travel managers put in extra time helping traveling employees to rebook flights or avoid London entirely.

Evaluate 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. The situation in Bolivia illustrates the problems.

Explain 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.