Overseas Expansion (Scenario) Whittaker Semiconductors Has Recently Decided to Expand Its Operations Overseas

question 44

Multiple Choice

Overseas Expansion (Scenario)
Whittaker Semiconductors has recently decided to expand its operations overseas. Amanda Quan, Vice President of International Business, assigned a team of investigators to analyze the risks faced by the company in making this move. Of particular interest were the risks that might affect the success of a new production plant to be located in one of three potential countries.
-Philip Baxter reported on the risks associated with establishing the plant in Country A. The most significant risk, in his view, was posed by the government's complex bureaucratic structure. Philip reported the likelihood of significant administrative delays in opening the plant. The risk identified by Philip is an example of which of the following?

• A) country risk
• B) commercial risk
• C) currency risk
• D) cross-cultural risk

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Definitions:

Superordinate Goals

Goals that are shared and require cooperative efforts from individuals or groups that might otherwise have individual or conflicting objectives.

Compromise

An agreement or a settlement of a dispute that is reached by each side making concessions.

Negotiating

The process of discussing and reaching a mutual agreement between parties with differing needs or opinions.

Added Value Negotiating

A negotiation technique that focuses on creating additional value that can be shared between the parties, rather than merely splitting existing value.