You are the Vice-President of Manufacturing at MicroKey Company, a major producer of computer keyboards with factories in various countries that provide jobs to thousands of local residents. The firm imports many of the raw materials used to manufacture its keyboards abroad. At one of its factories in Russia, MicroKey has begun to experience problems getting parts and components processed through customs, resulting in delays that are hurting profits. Upon conferring with colleagues at the plant, you have advised the problem can be solved if your company makes a payment to local officials, a common practice in the area. The bribe would expedite passage through customs. However, you believe bribery is unethical. Moreover, it is illegal in much of the world. For example, under the law of Canada, the United States, and most European countries, a manager can be prosecuted for offering bribes, even in countries where the practice is accepted. What should you do? Do you make the payment, realizing it will help your firm and reflects the way business is normally carried out in that part of the world?

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Country Risk:

Country risk refers to the ways governments restrict, or fail to restrict business activities. The nature of such restrictions varies around the world. In each country, national economic success substantially depends on the quality of laws and regulations. The government must strike the right balance - too little regulation promotes uncertainty while too much causes hardship.

Choose three (3) types of country risk from the list below. Next, select any country of your choice (excluding the United States), and give specific examples of how the government of that country promotes or restricts trade:

• Contract laws
• Accounting and reporting laws
• E-Commerce laws
• Foreign investment laws
• Controls on operating forms and practices
• Contract Laws
• Environmental Laws
• Legal System - Underdeveloped

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Using any of the trade theories discussed in the chapter entitled "Political and Legal Systems in National Environments,"illustrate your understanding by demonstrating a product's manufacture in a foreign country.

*Hint: Keep it simple and consider one of the production-based theories!

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Using this knowledge, explain what factors in the environment impact that process. Your answer should include three (3) different factors.

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'Offshoring' has many consequences for both the home and host country. Using this concept, provide an example of a company which utilizes 'offshoring' as part of their business strategy. Your answer should be comprehensive and fully explain the business and/or product, home, and host country.

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Your text identifies five (5) drivers of market globalization. Using a minimum of two (2) factors, identify a product or business which demonstrates the market globalization effect. Be comprehensive in your response!