1. The extent and severity of political risk and risk of terrorism largely reduces a country's attractiveness as an investment site. Comment on this statement highlighting the effects of political risk and terrorism on international business transactions. Support your answer with appropriate examples. (50 marks)

2. "Leadership plays a major role in creating an environment conducive to Participative Management" Discuss the above statement in light of theories of participation. Explain your views on the challenges face by leaders/managers today when initiating and implementing participative management with the highly diverse workforce in organizations and ever increasing market competition. (50 marks)