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International Political risks: Types & Examples

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.

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Course Text Book: Deresky, H. (2011). International management: Managing across borders and cultures (7th ed.). Upper Saddle River, NJ: Prentice Hall

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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. 


Political risk is when a host country makes political decisions that prove to have adverse effects on multinational firms. Some primary types of political risks are state actions to promote state-owned companies, "actions to tap into the cash flow of companies operating within national borders; and the building of trade barriers " (Culp, 2012). Other risks include discriminatory treatment in applying laws, barriers to reparitration of funds, loss of technology or intellectual property rights, and dishonesty by government officials.

Recently, Arab Spring protests occurred, threatening global businesses throughout North Africa and the Middle East through unruly demonstrations based on ...

Solution Summary

This solution discusses the primary types of political risks when companies operate in some companies. It explains each one and provides examples. Includes APA formatted references.

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