Questions for Discussion
1. Identify one or two economies/markets that fit into our author’s definition of ‘emerging markets.’
I think Russia is the most interesting example of an “emerging market.” I am honestly surprised it is not more advanced than it is. At the end of the fourth chapter, there is a lengthy discussion of the perils of doing business in Russia (p. 123-124). I’ll discuss the “political risk” of doing business in Russia for the next answer, but the political situation in Russia coupled with the looseness of the Russian legal system seems to have really stymied economic development. Any progress in this region made by the former Soviet Union seems to have been completely wasted.
2. Our chapter spends a significant amount of content develop the idea of ‘political risk.’ Using the text definitions, identify one or two countries/regions and comment on the ‘political risk’ in those countries/regions.
Russia is the region that has the highest market potential, yet is hampered by extremely high political risk. In many ways, it is clear that Russia is currently a hundred years or more behind the developed countries of the world as it relates to their political and legal system. Clearly, when Lenin and the Bolsheviks took over in 1917, the nation seems to have been frozen in time. Now that the relics of Communism have been, and continue to be, dismantled, Russia seems to be trying to pick up where things left off in 1917 between the overthrow of the tsar and the Bolsheviks coming to power. If the country can not bring about political, legal, and economic stability, they risk being mired in the past forever.
3. After listening/reading our Lesson 4 media story, you will know something about the Chinese interest and ability to influence U.S. culture, values, etc. From your text, media story, and economic observations of China today, what would you say were one or two of the ‘economic development consequences’ that the U.S. should be concerned about with China’s actions?
A major concern I have with the censorship discussed in the media story and Hollywood’s willingness to bend with it is the chance that US culture will stop seeing the Chinese Communist Party for what it is. By successfully hiding anything they believe will make China appear weak, it seems plausible to believe that Americans will stop pushing for human rights developments in China. Although it has made great strides to improve the quality of life for its people, and worked hard to bring workers’ rights and safety up to levels acceptable to the rest of the world, the power of the Communist Party in China should not be underestimated.
Wild, J. & Wild, K. (2013). International Business: The Challenges of Globalization. (7th ed.). Upper Saddle River, NJ: Pearson.