Political risk
The likelihood that political forces will cause drastic changes in a country’s business environment that adversely affect the profit and other goals of a particular business enterprise.
Polycentric staffing
A staffing policy in an MNE in which host-country nationals are recruited to manage subsidiaries in their own country, while parent-country nationals occupy key positions at corporate headquarters.
Positive sum game
A situation in which all countries can benefit even if some benefit more that others.
Predatory pricing
Reducing prices below fair market value as a competitive weapon to drive weaker competitors out of the market.
Price discrimination
The practice of charging different prices for the same product in different markets.
Price elasticity of demand
A measure of how responsive demand for a product is to changes in price.
