When a company decides to enter or continue business in a foreign market, it is exposed to associated political risks should be assessed and managed. Help is always aware of the level of macro political risk exists, that is, the political risk in different sectors and all companies in all countries or regions. Yet surprisingly little guidance of which there are to identify and evaluate company-specific political risk, called micro political risk. Here we offer you some new p … Read more »

When a company decides to enter or continue business in a foreign market, it is exposed to associated political risks should be assessed and managed. Help is always aware of the level of macro political risk exists, that is, the political risk in different sectors and all companies in all countries or regions. Yet surprisingly little guidance of which there are to identify and evaluate company-specific political risk, called micro political risk. Here we offer you some new perspectives on the nature of the micro is political risk in a host country, which, as it is based on the economic, social and political forces. We have a number of companies, certain variables that can affect corporate risk profile of the micro-political, and advance an innovative methodology that managers can address these variables and develop together an assessment of their company micro political risk. Examples of micro political risk situations are provided, along with discussion on the implementation of the proposed methodology.
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from
Ilan Alon,
Theodore T. Herbert
Source: Business Horizons
11 pages.
Release Date: 15, March 2009. Prod #: BH316-PDF-ENG
A Stranger in a Strange Land: Micro Political Risk and the Multinational Firm HBR case solution

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