Professional Documents
Culture Documents
market or location for a facility or investment. Knowing how to think about events and situations
will help the manager make that evaluation. Learning about the environment is the first step a
manager makes to manage risk in a foreign location. Country risk assessment is an assessment of
a country’s economic situation and politics to determine how much risk to employees, property,
Credit ratings: These are the ratings that are given by the credit rating firms to analyze the
investment risks. However the Sovereign Credit Ratings are provided for the foreign investments.
This rating enables the host countries to know the risk profile of the investment. There are different
types of risks that are taken into account while giving the rating for the investment they are local
currency risk default risk. currency risk, transfer risk. counter party risk. Differentiate the various
risks contained in major sovereign rating worldwide: Local Currency Risk is the risk involved in
the investments of the home country due to currency rate changes where. the default risk is a kind
of risk that which lies in every investment usually said to be as country risk also. This risk occurs
due to change in legal regulations of the country, Political and economic changes. While. the
currency risk plays a vital role in rating an investment as there will be change in the value of
currencies of different countries. This risk cannot be easily predicted as the change in the value of
currency occurs due to capital markets whereas transfer risk investments will be given a different
rating as this kind of risk arises only when the currencies of host as well as home countries are
transferred for remittances. Counter Party Risk is a kind of risk that which occurs if any of the
parties of investment failures to complete the transaction that is required this risk is given more
importance while giving sovereign credit risk rating as it occurs mostly between the investments
of different countries.
A company’s way of doing business depends a lot on the nature of the culture of the company’s
origin. From the cultural dimensions of China, we can say that the business structure of Sony was
quite hierarchical where positions were valued. The sense of competition also developed slightly
but not to an extent of the cut throat competition. The business of Sony is driven by challenges and
initiatives because the Chinaese culture is quite competitive and masculine in nature. Also as it’s
the tendency of China and Chinaese people, the business practices of Sony try to avoid
uncertainties as well as any kind of loop hole. So we can see how important is the culture of the
hierarchies. Chinaese are firm believers of the notion that one should portray his actions based on
the status and power one has. One should never go beyond the scope of his power and status. The
hierarchy is based on the consensus and cooperation of team as a whole. Decision making process
management. The decision flows from layer to layer, requiring affirmation from each layer and
Types of conflicts that may be encountered: Chinaese try to keep their personal feelings aside and
try to have composure at work. Chinaese never tend to show their emotions at a public place or
work. If they are angry or in times of a conflict, they will humbly fall silent. Conflicts within
groups are resolved through hierarchy. The Chinaese are very loyal to their group. An enemy of
manager often wants to discuss the performance of his subordinates. He likes to give frequent
Privileges and/or favoritism as it relate to sex, religion, class, or status: Chinaese rarely show
favoritism at work based on person preference as the Chinaese like to keep their personal life and
Ethnicity and gender issues: China is a highly masculine society. So the power is mostly in the
hands of Chinaese males. Gender equality is a problem area in China as the women there have to
strive beneath the glass ceiling. In China, most of the people are Chinaese. People from other
ethnicity are usually the labor class who had migrated to China for work.
Customs that may have an impact on the organization’s way of doing business: Chinaese are very
traditional people. They are high risk avoiders so do not like any change. The age-long customs
and traditions are highly valued and no reforms have been attempted on the same.