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Strategic Options for Political Threats

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What strategic options companies and governments have to deal with political threats?

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Solution Summary

International businesses have it's risks and political threats. Companies and governments must strategically plan to deal with these inevitable risks since they can have a great impact on the future success of a company.

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Political factors can have adverse effects on the economic stability in a country, therefore effecting international business. Both political and economic factors must be simultaneously stable to reduce any type of risks to international businesses. Specifically, the political factors that can impact global business include national governments' attempt to make decisions that aren't in the best interest of the markets, but in the best interest the governing officials. Economic factors include the bodies of governing institutions which are responsible for the economic regulations in developing countries, and contribute to the future of globalization. These governing institutions include the International Monetary Fund (IMF), The World Bank, and the World Trade Organization. ...

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