CTQ#2

International Business CTQ#2

Enkhjin Namjmaa

LETU Mongolia American University

CTQ#2

Question 1. Why might a government-owned firm have an unfair advantage over privately

owned companies?

- Government-owned firms could have unfair advantage over privately owned companies

by having reduced tax, subsidiaries, government funding, which leads the government

owned companies to lower their operation/production cost significantly and financial

support to dominate a market. Also, when the firm is owned by stable government, it

significantly lowers their risk of being bankrupt because the government protects the

firms, for example if an international competition is posing a risk to their business, they

can pass a national law that protects their business etc.

Question 3. When they accept foreign assignments, how can expatriates prepare for such

assignment’s risk?

- Upon accepting foreign assignments, expats should prepare for the assignment’s risk.

First of all, they should research about the country they are going to, not only from the

business aspect, from cultural aspect as well. If an expat does not research about the

customs and culture of that country, their normal actions back home could be seen as

rude in a foreign country. After obtaining information either through their company or

own research, they should now consider the health risk as well as the security threat that

they could face such as kidnapping, extortion, and ransom. Of course, there is an

insurance for such incidents which offers ransom fees, special negotiators, money for

hostage situation as well counseling for the victims and their family. Consider the nature

of your business, duration of your assignments then decide whether you need the

insurance or not.
CTQ#2

Question 4. If you were responsible for developing your company’s international strategy, what

role would country risk assessment play?

- If I were responsible for developing my company’s international strategy, Country Risk

Assessment (CRA) would play important role because by analyzing the risks, we can

proactively plant to prevent such risks from occurring. However, depending on which

country we are expanding to, I would focus on different things. For example, if my (U.S

based) company is expanding into Mongolia, in that case I wouldn’t consider much about

the piracy and terrorism since Mongolia is considered to be “No impact of terrorism” in

the terrorism index and Mongolia also does not have any sea. Although, with the

advancement of technology I would definitely monitor the cybercrime since international

businesses do utilize technology and internet a lot.