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Globalism The Hawthorne Studies International Term Paper

In an attempt to correct the imbalances created by the preferred investor's ability to influence government regulatory policy, corporations may engage in corrupt practices through the use of bribes, kickbacks and other inducements. These gifts are at times considered as necessary in some climates. However the exposure of these practices is a public relations disaster for many companies. In addition to a sullied image, there is also the possibility of legal sanctions arising out of the situation. The local environment can deteriorate to the point where the country moves from political and economic instability to social instability which places workers at risk. This decline may occur rapidly and without sufficient warning. In Nigeria and the Philippines foreign workers come under threat frequently from kidnappers and terrorists; and often there is the loss of life (Ekeinde, 2007; Frynas 1998; Investment Risk, 2007). The loss of life represents the supreme risk that can be faced in any jurisdiction.

The immediate concern of investors is a return on their investment. While there are opportunities in unstable countries to make a sizable return on capital invested, the attendant risks are equally sizable. These risks...

All errors will be costly.
References

Bollen, K, & Jones, S.T. (1982). Instability and investment. Social Forces, 60(4),

1070-1088.

Davis, A. (2009). Russia's unpredictable government and economic instability have investors pulling back from the one-time hot spot. Retrieved from http://www.allbusiness.com/economy-economic-indicators/economic-news/12541335-1.html

Ekeinde, A. (2007). Dutch oil worker killed in Nigeria oil industry. Reuters. Retrieved from http://www.alertnet.org/thenews/newsdesk/L16681096.htm

Frynas J.G. (1998). Political instability and business: Focus on Shell in Nigeria. Third World

Quarterly, 19 (3), 457-478.

Investment risk in the Philippines to remain high through 2007 due to growing threat of terrorism and political instability. (2007). Business Wire. Retrieved September,

2010 from HighBeam Research: http://www.highbeam.com/doc/1G1-166330591.html

Venezuela Chavez Nationalizes French owned retailer. (2010). Reuters. Retrieved form http://www.reuters.com/article/idUSN1714485520100117

Sources used in this document:
References

Bollen, K, & Jones, S.T. (1982). Instability and investment. Social Forces, 60(4),

1070-1088.

Davis, A. (2009). Russia's unpredictable government and economic instability have investors pulling back from the one-time hot spot. Retrieved from http://www.allbusiness.com/economy-economic-indicators/economic-news/12541335-1.html

Ekeinde, A. (2007). Dutch oil worker killed in Nigeria oil industry. Reuters. Retrieved from http://www.alertnet.org/thenews/newsdesk/L16681096.htm
2010 from HighBeam Research: http://www.highbeam.com/doc/1G1-166330591.html
Venezuela Chavez Nationalizes French owned retailer. (2010). Reuters. Retrieved form http://www.reuters.com/article/idUSN1714485520100117
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