1. In your opinion, is there still political uncertainty in Brazil? Political risk is defined as the unanticipated probability that firms' foreign investments will be constrained by host government policies (Luthans, 2014). However, when political parties in Brazil or any other nation change decisions, the risk increases. Additionally, democratic countries like Brazil face additional risks due to factors impacting their economy. Therefore, political risks have different characteristics such as transfer risk (i.e. they arise from government policies that limit the transfer of capital, money, labor, technology, etc. from the host country) operational risk (i.e. host government policies that directly pose a constraint on management and why Brazil's problems should have been addressed before becoming a multinational in that country and in this regard, multinationals should consider both macro and micro risks of that country to minimize risks with any operation in a developing or emerging economy expected, as well as high returns and long-term potential Brazil offers progress in terms of market and expansion through neighboring countries and has the easiest entry compared to other South American countries. Therefore, both BellSouth and AES should consider the policies of the government of Brazil respecting their By adapting their strategies, multinationals can use various techniques (e.g., integrative, protective, defensive, and defensive). Therefore, multinationals may consider joint ventures and/or outsourcing as alternatives. Provide social responsibility to align with the needs of Brazilian culture which will provide a better picture of the multinational and this will provide support from the local people and help their operations within the country. Multinational companies should use micro methods to improve their operations. Furthermore, if multinationals' human resources practices were more focused on Brazil's culture, this could help them to be motivated and provide a competitive advantage in an unstable context.
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