Risk Considerations of Russia vs. Czech Republic, Islamic Capitalism, and McDonald’s in India
Assignment 2
Task 1: You are the CEO of a company that has to choose between making a $100
million investment in Russia or the Czech Republic. Both investments promise the
same long–run return, so your choice is driven by risk considerations (Chapter 3:
political, economic, and legal risk).
Assess the various risks of doing business in each of these nations. Which investment would you favor and why?
Write a 1/2–page paper to summarize your thoughts.
Task 2: Read about Islamic Capitalism in Chapter 4. Do you think that business
practices in an Islamic country are likely to differ from business practices in the United States? If so how?
Write a 1/2–page paper to summarize your thoughts.
Task 3: Read the case on McDonald’s and Hindu Culture and answer the following questions:
a) McDonald’s has been reasonably successful in India, despite the country’s very different food culture. Why?
b) Do you think that McDonald’s could have and should have foreseen the problems it ran into in India when using beef extract in its oil? What could it have done differently?
Write a 1/2–page paper to summarize your thoughts
