Read chapter 10, which is found on page 336 of the book that is attached. Once you have read chapter 10, write a one page summary on the chapter. After that, answer the two questions below on the next page. Do not include the questions on the final document. Just put the corresponding question number with the answer.

1. Political risk is the likelihood that the foreign investment of a business will be constrained by a host government’s policies. In dealing with this risk, companies conduct both macro and micro political risk analyses. Specific consideration is given to changing host-government policies, expropriation, and operational profitability risk.

2. Effective alliance management includes careful selection of partners, defining the tasks and scope of the alliance, addressing cross-cultural differences, and responding to host-government requirements.