Political Risk

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POLITICAL RISK
Abstract
How companies could face political risk?
We decided to investigate many study cases of political risk based on what we have learnt in class and trying to focus in distant regions such as Eastern Europe and Southeast Asia for not being redundant on the already well-known cases of Latin America. To achieve it, we used the data base of ProQuest and we found many articles about it. The references of this investigation are included in the bibliography of this work at the end of the paper.

Key Words:

• Political Risk: is what happens when a company or companies face a series of political changes that could threaten its situation in a country.
• Political Threat: is a situation when a company would eventually suffer a series of bad conditions on a certain market.
• Political Changes: are a series of changes within the government of a country.
• Micro Risk: a type of political risk that threatens the activities of a certain industry.
• Macro Risk: a type of political risk that threatens all the industries.
• Violent Situations: Situations that risk the integrity of the people, the infrastructure, the economy among others in the country.
• National Requirements: when a country forces a company to modify its circumstances to stay in the market.

Introduction

We studied the influence of political risk in business all around the world analyzing its definition through it. It is important to take into account that in business it is crucial to know about the political situation of a country because political risk is not always presented in the same way, it depends on the characteristics of the countries involved in the problem. We had a previous knowledge given by the teacher and we also had information obtained from the news we are constantly reading, but we did not have many examples of that because all the cases that could be examples of political risk took place in Latin America; all of them were extremely valid and



Bibliography: • Business: The communist entrepreneur; face value (2003). The Economist Intelligence Unit. Retrieved fromhttp://search.proquest.com/docview/224030774?accountid=45662 • Ukraine 's azovstal overcomes politics to sell $175m (2006). Euromoney Trading Limited. Retrieved from http://search.proquest.com/docview/231056813?accountid=45662

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