For my global risk analysis, I have chosen Wrigley Gum as my example of a company that operates internationally. Wrigley will encounter many political & economic risks by doing business globally, but can face specific issues both politically & economically in China & India. In China, the effective enforcement of intellectual property rights infringement isn’t up to standard yet, or in other words, companies can use your technology without paying for it. This is a chief concern of rights holders because the high piracy rates in China. If Wrigley gum comes out with a new longer-lasting flavored gum directed at the Chinese market, they could lose their recipe to another domestic gum maker (such as Haitai) and therefore lose their competitive edge in the new market. This can be seen as both economic & political, because they can lose their economic advantage entering the market due to the governing body. China is also known as the top emerging market of the decade. However,
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This note was uploaded on 09/08/2010 for the course BUS 187 at San Jose State University .