Global Operations managenment - Essay Example

Global Operations Management In order to expand on global level, PPQ Parts may have following political and economic issues: Political Issues PPQ Parts may have the most significant concern that there is a likelihood that the present or forthcoming government may alter the legislation relating to that particular product that PPQ is dealing in with. The only way out to address this issue is that, PPQ Parts should undertake a contract with the government that in future, the PPQ Parts’ products will not be affected by any of government’s action.2. Another political issue that PPQ Parts might have to face is the propaganda raised by different lobbies regarding the PPQ Parts’ products in that territory due to whatever reason.

In order to address this issue, PPQ Parts should uphold a decent relationship with every stakeholder of the country and do not engage into any activity which cause impairment to the reputation and goodwill of PPQ Parts.Economic Issues1. The foremost economic issue for PPQ Parts would of exchange rate fluctuations. These adverse movements in foreign exchange rate can harm the company’s profits. So in order to mitigate this risk, PPQ Parts should implement a reasonable hedging strategy to combat this foreign exchange currency risk.2. Another economic issue that the company might have to face is the level of inflation in the foreign country.

Due to inflation, the cost of goods sold of PPQ Parts may increase resulting in lower profits. So in order to avoid this situation, PPQ Parts should estimate the reasonable demand of the PPQ Parts’ products and contract with the suppliers to fix the rates of materials for future usage.ReferencesInternational Management. (n.d.). Retrieved from http://www.referenceforbusiness.com/management/Gr-Int/International-Management.html