Briefly describe what you perceive are the risks of

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these countries. Briefly, describe what you perceive are the risks of corruption, such as paying bribes, that your selected company might face in these countries. Stepping away from France and the United States in order to show a drastic difference in Corruption Perceptions Index (CPI) scores a review of Japan and China has been conducted. A 14
FINAL PORTFOLIO PROJECT country’s CPI score “measures the perceived level of the public sector on a scale of 0 (highly corrupt) to 100 (very clean” (Transparency International, 2016). China’s CPI score of 37 recognizes that corruption is prevalent in China whereas Japan’s CPI score of 75 indicates that the country is relatively peaceful (Transparency International, 2016). While corruption can be seen in Japan it is a minor issue compared to China. Several scandals have been revealed in light government reform with regard to transparency in Japan. In an article in the Bloomberg report in March 2016, Toshiba, the well- known computer, and Technology Company, hid $1.3 billion in losses at their nuclear power operations (Shoenberg & Robinson, 2016). The loss became apparent after political reforms called for more transparency in corporate governance and risk management. The article suggests that governance is easy to fake and an outbreak of confessions have followed including Mitsubishi Motors, reviewed in a separate article, which admitted to falsifying data in April 2016 regarding fuel economy in their vehicles (Fujikawa, 2016). Similarly, accounting fraud is prevalent in China. Longtop Financial Technologies is currently being investigated for fraudulent record keeping. Longtop Financial Technologies, during their yearly accounting audit, was questioned regarding discrepancies in reported vs. actual revenue (Norris, 2016). The article goes on to explore how Longtop Financial Technologies attempted to bribe and threaten their auditor Deloitte Touche Tohmatsu. Given the goods and services The Walt Disney Company provides it is my opinion that the company has taken the right approach. While setbacks have been seen over the years, including the slow progress of EuroDisney, the majority of The Walt Disney Company’s foreign market work has been highly successful. 15
FINAL PORTFOLIO PROJECT Determine your company’s mode of entry into foreign markets. This should be based upon a serious analysis of your company’s risk-return tradeoff. In your opinion, has your company taken the right approach? The Walt Disney Company has utilized several modes of entry into foreign markets beginning with outsourcing their manufacturing to Asian countries in the late-twentieth century. With the globalization of The Disney Store © the company not only purchased or leased property in foreign countries to expand the stores but also offed licenses to those interested in franchising a Disney Store. As the company expanded their theme park enterprise into Japan they entered into a joint venture with the Oriental Land Company beginning in 1983 (Oriental Land Company, 2016). Executives at The Walt Disney Company evaluate the risks of moving into a

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