1. Amazon is considering an investment project proposal to expand its operations in Germany. As part of the proposed project, the German operation is required to pay an annual royalty of 500,000 to the parent company. Explain the implications (i.e., risks) of the 500,000 foreign currency payment for the parent company and way to mitigate the risk.
2. What type of management control system (which -centric) would benefit Amazon in achieving their operation goals across the world? How might your operational budgets need to be different based on culture in USA vs. Germany vs. Taiwan vs. Lithuania?