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Political Risk in International Business

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In your own words, define and describe political risk. Create an impressive definition that demonstrates to potential employers or clients that you can clearly articulate the risks associated with international management.

Luthans, F., & Doh, J. P. (2012). International management: Culture, strategy, and behavior (8th ed.). New York, NY:

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This is a 370 word response defining and describing political risk as it relates to international management.

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Political Risk

Political risks are probabilities of negative occurrences as a result of political changes impacting a country and its dealings with other countries. Organizations are in business to make a profit. Therefore, political risks must be managed successfully for a company to make a return on its investments. There are many reasons for political changes. In this study, we will evaluate two logics which are governmental transformations and amendments derived from foreign policy makers.

Political Changes

Government transformation is a ...

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