Assignment: Managing Political Risk, Government Relations, And Alliances

Management across Cultures NameAffiliate InstitutionDateManaging Political Risk, Government Relations, and AlliancesNokia faces several political risks in Asia most specificallyChina such as the battle between the national and the local governments. The instability makes it difficult for any business to set up shop and invest in the country, as companies may not know what laws to abide by. Nokia also faces the risk of preference given to domestic companies over foreign ones(An et al.,2016). The policies that protect local firms threaten to run Nokia out of business. An example is the higher taxation imposed on foreign firms. Besides, the economy of China is a closed market one. This means that consumers prefer cheaper locally made products, thus creating an uneven competition. The government also favors local organizations making it hard to compete in the market.Lastly, Nokia would face a reputational crisis if it assisted China in doing things such as spying on its citizens through their phones.According to Tian, (2016),Nokia could manage the political risks in china by using various strategies such as working with the home country government to encourage China to honor its commitment