International Business: Political Risk Assessment for Latveria

This report provides a comprehensive analysis of Global Gear Ltd.'s potential international business expansion into Latveria. The report begins with recommendations based on a case study, focusing on market entry strategies, the importance of offline sales, and leveraging trade agreements. It then identifies key considerations, including the 'rule of man' and the impact of Latveria's customary law. Finally, the report examines the political risks associated with operating in Latveria, considering the government's political leanings and potential instability. The analysis emphasizes the need for detailed market research, adaptation to local conditions, and monitoring market trends to ensure long-term success and profitability in the competitive Latverian market. The report references several academic sources to support its findings.

International business

Contents
Contents...........................................................................................................................................2
Question 1. Appropriate recommendations in relation with the case study that was mentioned
in the case study...............................................................................................................................1
Question 2. Identification of different consideration which includes rule of man......................1
Question 3. Examination of the political risks that are related with the case study........................2
REFERENCES................................................................................................................................4

Question 1. Appropriate recommendations in relation with the case study that
was mentioned in the case study
It can be recommended from the case study that the firm which is mentioned in it that is
Global Gear Ltd. is a popular retail mattress firm which is mainly operating in South Korea and
is doing good business there in both online and offline platforms and thus it can be recommended
that since it is considering to operate in Latveria whose population is very high too as compared
to the country in which it is currently operating which is accounted at approximately 90 million
and thus there is a great chance of expanding the business and thus it can enable the company to
earn more amount of profitability and also it can help the organisation to grow in the market.
Though there is a tough competition in the Latveria region and the sales of mattresses that are
done there is mainly on offline platforms so it can become a challenge for Global Gear Ltd. but it
can use detailed research and analysis of all the market components so that it can help the
company to sustain and survive in the industry for a much longer time. apart from that it can also
be recommended that the corporation that is discussed above must increase its sales on offline
platform also so that it can cover a larger market share since 77% of the sales in Latveria region
comes from the offline platforms as online platform is not much used in that region as compared
to South Korea in which it is already operating and has a good volume of online sales. Also there
is a trade agreement done between Latveria and South Korea which helps in reducing tariffs and
thus reduces the amount of duties that the owner or the customer has to pay for the mattresses.
There are a lot of cultural differences too between both the nations and thus it can be
recommended that Global Gear Ltd. must analyse and evaluate all the aspects in detail so that it
can help the firm in adding value in the long term context (Blau, 2018).
Question 2. Identification of different consideration which includes rule of
man
Latveria is a different region for Global Gear Ltd. as its currency is Dinars and has a
different political, cultural, legal, economic, and environmental aspect and thus the firm must try
to incorporate with it in precision so that it can help the organisation to build its value there too
which can help it to become more and more profitable in the industry in which it is operational.
Also rule of man can be used in particular in this context since it is a rule that says that things
change from place to place or ruler to ruler and thus different aspects has to be adopted if one has

to excel in different areas and in different markets and the same has to be applied in context of
the firm that is Global Gear Ltd. as the law in Latveria is a customary law and it gives a lot of
importance to the local persons and it is mainly associated with the betterment of the people that
are living there so it becomes highly predictable and thus the business firm that is mentioned
above can analyse the past data of different companies and can adopt various plans that are used
by them which made them successful if not overnight then in long term. also the system is very
complex in that region and there is a bit of essence of corruption too in Latveria and thus the
company must use all its best efforts and resources in that regard so that it can help the firm to
gain competitive advantage over others so that it can be able to be profitable in expanding its
business all over. Apart from that Global Gear Ltd. must monitor the trends and preferences of
the persons that are living there so that it can sell its products and services according to the
market conditions that are prevailing there which can prove beneficial in the long run
(Chiarvesio and Romanello, 2018).
Question 3. Examination of the political risks that are related with the case
study
Political risks are those risks that can affect the ability of the business to perform in the
market and they are generally associated with the stability and instability of the government that
is operating in a particular region (Omane-Adjepong and Alagidede, 2019). Since Latveria has a
government that is left leaned by the average living standards of the people that are living there
so it pose as a risk to the company which is mentioned above and also the military of that region
has differences with the government and is opposing all the aspects of that quietly too and thus
Global Gear Ltd must assess all these aspects in a very detailed and elaborated manner so that it
can add value to the firm in the long run scenario. Apart from that Latveria is said to be highly
complex in terms of tradition and thus introducing a new product or a new company in their
region can impact the overall performance and profitability of the company in the industry but if
Global Gear Ltd. put the focus on analysing the trends and the changes that frequently occurs in
the market in context of Latveria then it can expand, grow, and develop its business as per its
expectations and standards that are made at the starting of the planning procedure. Thus it can be
said that there are a lot of things that has to be monitor by the organisation and by doing that it
can surpass all other competitors that are operating there and can become a profitable company

in the future and can stand ahead of all its competitors that are operating in the similar market
and in similar region (Wu, Ma and Zhuo, 2017).

REFERENCES
Books and journals
Blau, B. M., 2018. Price dynamics and speculative trading in Bitcoin. Research in International
Business and Finance. 43. pp.15-21.
Chiarvesio, M. and Romanello, R., 2018. Industry 4.0 technologies and internationalization:
Insights from Italian companies. In International Business in the Information and
Digital Age. Emerald Publishing Limited.
Omane-Adjepong, M. and Alagidede, I. P., 2019. Multiresolution analysis and spillovers of
major cryptocurrency markets. Research in International Business and Finance. 49.
pp.191-206.
Wu, J., Ma, Z. and Zhuo, S., 2017. Enhancing national innovative capacity: The impact of high-
tech international trade and inward foreign direct investment. International Business
Review. 26(3). pp.502-514.