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International Expansion from the Perspective of a Company

Looking at the issues affecting international expansion into a country from the perspective of an individual company, what are some categories and examples of uncertainties in the political climate that have to be considered to mitigate risk of expansion? Please include a 2-3 references.

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One of the main issues is that there are so many sources of political risk within a country. A country can have unexpected changes in presidential power due to the unexpected death of a president or leader, presidents being run out of power in politically intense environments, changes in military leadership, which can drastically change the political intensity, and other issues, such as changes in rules and regulations that affect international companies.

Many large companies that have expanded internationally have actually included political risk in their enterprise risk management due to the consequences that political changes and events can cause. To reduce political risk during an expansion, companies simply have to monitor constantly changing climates in that ...

Solution Summary

This solution examines the issues that affect international expansion into a country from the perspective of the individual company. The uncertainties, risks, and political issues are evaluated. The most common methods and best practices to mitigate international expansion risk are also discussed.