Purchase Solution

Political Risks for International Businesses

Not what you're looking for?

Ask Custom Question

Firms operating in some countries are exposed to political risks. What are the primary types of political risks? Explain each of them and provide some examples.

Purchase this Solution
Solution Preview

Political risks
An online source noted that political risk is the risk that an investment's returns could suffer as a result of political changes or instability in a country. This instability that may affect investment returns could have resulted from change in government, legislative bodies, other foreign policy makers, or military control. The same source further pointed out that political risk becomes more of a factor as duration of investment becomes ...

Solution provided by:
Elisa Valdez, PhD
Education
  • Bachelor of Science in Business Administration, University of the Philippines
  • Master in Business Administration, Saint Mary's University
  • Doctor of Philosophy in Education, University of the Philippines
  • Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
Recent Feedback
  • "Excellent information thanks for the input"
  • "Thank you"
  • "Very thorough and informative. Thank you."
  • "Good response. Very detailed"
  • "This solution is excellent. Thank you"
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

View More Free Quizzes
Related BrainMass Solutions

  • What risks are associated with international business and ho

    Describe three risks that international businesses face and ways to mitigate those risks? What DOES CORPORATE FINANCE TEACHES US? How can you apply it to the work place? Your homework solution is attached. Thank you for using BrainMass!

  • International Business Example Questions

    International Business Political factors One of the political factors affecting companies outside their home market is political instability. It is very difficult for a company to develop in countries with long-term conflict.

  • Five Main Types of Political Risks

    International business: Types of political risks. Retrieved September 3, 2012 from http://www.helium.com/items/1873182-international-business-political-risks-corruption. Wagner, Wieland (January 6, 2012).

  • Risks of Operating in an International Market

    For Instructional Purpose Political Risks: Political risks indicates the threats, dangerous conclusions or incidents that will result in unfavorable business outcome for organizations that are operating their businesses in nations away (other international

  • Strategic Options for Political Threats

    Journal of International Marketing, 14(3), 1-32. Retrieved from http://web.ebscohost.com.libproxy.edmc.edu International businesses have it's risks and political threats.

  • strategic planning

    The international strategic planning has to incorporate numerous control mechanims to encounter a wide variety of risk prevalent in conducting international businesses such as exchange rate risks, repatriation risks and taxation related issues, etc.

  • Country risk and the foreign exchange market

    For example, some businesses are more affected by political risks than others. Similarly, for some businesses, cultural risks are the most important and political risks do not pose much threat.

  • International business markets

    This can cause a higher level of uncertainty for international businesses in regard to their fiscal solvency.

  • Impact of Types of Risk on a Multinational Company

    Their ability to fight against such risks is also weak due to their location in different nations. The company's operating in international markets often become helpless against political risks such as expropriation.

View More Related Solutions