What are some of the major political risks associated with investing in a foreign country? How does the threat of global terrorism effect foreign investment and the foreign-exchange market in the world today? In your opinion, what might be done to promote investment in unstable or potentially dangerous areas of the world?
On Political risks:
Perry (2013) describes the major political risk as a "political decisions made within a country that might result in an unanticipated loss to investors". It is the "willingness" to pay its obligation and "maintain a hospitable climate for outside investment".
A country will fail as a haven for investment if it has a volatile political environment.
On the other hand, Christy (2014) said that major examples of political risks are "acts of war, terrorism, and military coups".
On global terrorism and foreign investment and foreign exchange:
Empirical studies on global terrorism were diverse.
Using a sample of 112 countries, the Pennsylvania State University found out that "foreign direct investments, trade, and portfolio ...
This is a discourse on how to do business in dangerous areas of the world.