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Political Risk

I need to research the issues involved in dealing with political risk in the business for a research paper written in MLA style. Any help with information and structure will be appreciated. Thank you.

1. What are the issues involved in dealing with political risk in the business?

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I am wondering if you have researched your topic of political risk in business yet. One approach to help with a research question like this one is to provide a tentative outline and then consider information for each section. This is the approach this response will take. I also attached a MLA resource to use for your final copy. Your tentative outline might look something to the effect:

I. Introduction (e.g. introduce topic, include a purpose statement: The purpose of this report is to...)
II. Political Risk (e.g. definition, types of political risks, managing political risks, etc.)
III. Conclusion (sum up main points)

Now let's look at some information to consider for each section. However, it is important that you also research the topic and add your own ideas, as well.

Political risk in business is an interesting topic. According to Brink (2004) all corporate strategy depends on certain assumptions regarding national political conditions. Through its legislative power, for example, the government is able to change and influence the business environment, including regulations affecting the firm's ability to compete and even the ownership of the company assets. Politics and government are especially significant to the strategy to the multinational corporations. Because such companies operate within the jurisdiction of more than one government, the probably will increase significantly that their plans will be impacted by some governmental initiatives (Brink). The purpose of this report is to...

Politic risk increases for foreign investors. Unlike the domestic firms who deal with only the local government of origin, for instance, the strategic choice open to multinational companies includes national location and thus government. The political environment becomes part of management's strategic decision-making. Even though the company is incorporated under a local government, because it is not a domestic firm so it is subjected to special regulations and government actions that do not apply to the domestic firms. In other words, the foreign ownership places it in a special category by the host country, making it imperative to predict the political risk factors and incorporate it into management strategy. So, all companies derive their authority from and are dependent on the government. However, recognizing this fact, doe not mean that they are without resources in managing their relationship with the government. There are methods of anticipating national political risk. Since strategy is concerned about the future position of the company, knowing about existing governments and political conditions is not enough. Political risks need to be predicted and discussed in terms of what this will mean in terms of the firm's exposure to political risks. There are strategies to deal effectively with political risks as well. Although the firm's ability to influences national political actions, there are measures that can be taken to avoid or mitigate the effects of adverse political actions (Leontiades).

What is Political Risk?

Generally political ...

Solution Summary

By example, this solution discusses issues involved in dealing with political risk in the business.

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