Download or read book Political Risk and Firm Experience written by Benjamin A. T. Graham and published by . This book was released on 2016 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Political risk deters foreign direct investment (FDI) and deprives developing countries of much needed capital. However, the negative effect of political risk on FDI in the aggregate masks important variation across different types of risk and different types of multinational firms. I argue that some risks, particularly bureaucratic risk, can be effectively mitigated by firms with the right experience. This leads countries with high levels of bureaucratic risk to attract entry primarily by firms with experience managing bureaucratic in other host countries. Other risks, particularly policy risk, are more difficult to mitigate, and these risks have less effect on the average experience level of entering firms. I test this theory on confidential data from the U.S. Bureau of Economic Analysis that cover the full universe of U.S. outward foreign direct investment from 1990-2009. I find that bureaucratic risk, but not policy risk, is associated with entry by more experienced firms. Both types of risk deter investment, but one does so more selectively. By disaggregating both different political risks and different types of direct investors, we can uncover how different political risks (and therefore different institutions and policies) affect both the pattern and pace of development.
Download or read book Managing Political Risk Assessment written by Stephen J. Kobrin and published by Univ of California Press. This book was released on 2022-03-25 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: The accurate assessment of political risk can make the difference between success and failure for a multinational corporation, which must keep corporate objectives in sight while operating in a large number of widely varying environments. While environmental or political risk assessment has become an explicit function in many firms and is inherent in all foreign investment, the uncertainties of foreign political environments continue to pose critical problems for managers. In Managing Political Risk Assessment, Stephen J. Kobrin describes and analyzes the techniques of political risk assessment employed by U.S. multinationals. His analysis draws on organizational theory, economics, political science, and international relations. The study reveals that those charged with political risk assessment have often not been fully integrated into the core of the managerial process, information from subsidiaries is often biased, and the flow of data is poorly controlled. As a result, virtually all firms experience difficulties in using environmental assessment in planning and making decisions. Kobrin persuasively argues that the thorough integration of the assessment function into the managerial process is a necessary step, as the need for political risk assessment intensifies with the increased interaction between international business and its social and political surroundings. Political scientists, institutional economists, managers, and students and teachers of international business will all profit from Kobrin’s excellent synthesis of knowledge in this area of scholarly interest. This title is part of UC Press's Voices Revived program, which commemorates University of California Press’s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1982.
Download or read book A Short Guide to Political Risk written by Robert McKellar and published by Routledge. This book was released on 2017-05-15 with total page 195 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a competitive and increasingly internationalised business world, many companies rely on the high risk/reward ratio of operating in unstable areas. Those companies willing to engage in emerging or developing countries can often be exposed to a politically volatile environment over which they have little control. Political risk, therefore, is one of the most hazardous challenges that an international business can face. In A Short Guide to Political Risk you will find a business-centric introduction to political risk that will familiarise international managers with the concept and accelerate the learning curve towards proficient and coherent political risk management. Robert McKellar explores: the key political risks that companies have faced in the recent past, and current trends in the evolution of the political risk landscape; the concept of political risk and its constituent elements; models and approaches for assessing political risk; the principal options for managing political risk, and suggestions for organisational structures to ensure a coherent and consistent approach; as well as wider issues that a company needs to consider in developing its own attitude and philosophy on political risk. A Short Guide to Political Risk is an essential introductory guide for risk managers and for all senior managers concerned with their organisation's global performance and reputation.
Download or read book Political Risk written by Condoleezza Rice and published by Hachette UK. This book was released on 2018-05-01 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: From New York Times bestselling author and former U.S. secretary of state Condoleezza Rice and Stanford University professor Amy B. Zegart comes an examination of the rapidly evolving state of political risk, and how to navigate it. The world is changing fast. Political risk-the probability that a political action could significantly impact a company's business-is affecting more businesses in more ways than ever before. A generation ago, political risk mostly involved a handful of industries dealing with governments in a few frontier markets. Today, political risk stems from a widening array of actors, including Twitter users, local officials, activists, terrorists, hackers, and more. The very institutions and laws that were supposed to reduce business uncertainty and risk are often having the opposite effect. In today's globalized world, there are no "safe" bets. POLITICAL RISK investigates and analyzes this evolving landscape, what businesses can do to navigate it, and what all of us can learn about how to better understand and grapple with these rapidly changing global political dynamics. Drawing on lessons from the successes and failures of companies across multiple industries as well as examples from aircraft carrier operations, NASA missions, and other unusual places, POLITICAL RISK offers a first-of-its-kind framework that can be deployed in any organization, from startups to Fortune 500 companies. Organizations that take a serious, systematic approach to political risk management are likely to be surprised less often and recover better. Companies that don't get these basics right are more likely to get blindsided.
Download or read book The Miniature Guide to Political Risk Analysis for International Business written by Steven Johnston and published by Steven Johnston. This book was released on 2020-12-20 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: Political risk is one of the most frequently discussed risks to doing business internationally. But what exactly is political risk and what are the best ways to analyze and prepare for political risks that may jeopardize your business? Based on more than two decades of evaluating political risk to companies doing business all over the world, Steven Johnston explains the fundamentals of effective political risk analysis. What are the foundational principles and approaches for modeling and how can professionals improve accuracy of forecasting political risk? What really works? Why is high quality political risk analysis important to every business operating internationally? It’s not IF your business will be impacted by political events and actions. It is WHEN and HOW? However, effective political risk analysis isn’t limited to the domain of business resiliency and protecting downside risk. It is also a significant competitive advantage when a business can more accurately see just a little farther into the future than competitors and be ready to make earlier moves to avoid problems or take advantage of opportunities. The book spotlights top shelf thinkers about political risk and provides state-of-the-art ways to operationalize their valuable contributions into the business process. In addition to commenting on the current state of the field of political risk analysis, Johnston makes recommendations for improving the domain of political risk analysis. This book should be essential reading for any business professionals investing across borders and especially doing business in emerging economies.
Download or read book Managing Political Risk Assessment written by Stephen J. Kobrin and published by Univ of California Press. This book was released on 2024-03-29 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: The accurate assessment of political risk can make the difference between success and failure for a multinational corporation, which must keep corporate objectives in sight while operating in a large number of widely varying environments. While environmental or political risk assessment has become an explicit function in many firms and is inherent in all foreign investment, the uncertainties of foreign political environments continue to pose critical problems for managers. In Managing Political Risk Assessment, Stephen J. Kobrin describes and analyzes the techniques of political risk assessment employed by U.S. multinationals. His analysis draws on organizational theory, economics, political science, and international relations. The study reveals that those charged with political risk assessment have often not been fully integrated into the core of the managerial process, information from subsidiaries is often biased, and the flow of data is poorly controlled. As a result, virtually all firms experience difficulties in using environmental assessment in planning and making decisions. Kobrin persuasively argues that the thorough integration of the assessment function into the managerial process is a necessary step, as the need for political risk assessment intensifies with the increased interaction between international business and its social and political surroundings. Political scientists, institutional economists, managers, and students and teachers of international business will all profit from Kobrin’s excellent synthesis of knowledge in this area of scholarly interest. This title is part of UC Press's Voices Revived program, which commemorates University of California Press’s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1982.
Download or read book How Does Political Instability Affect Economic Growth written by Mr.Ari Aisen and published by International Monetary Fund. This book was released on 2011-01-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to empirically determine the effects of political instability on economic growth. Using the system-GMM estimator for linear dynamic panel data models on a sample covering up to 169 countries, and 5-year periods from 1960 to 2004, we find that higher degrees of political instability are associated with lower growth rates of GDP per capita. Regarding the channels of transmission, we find that political instability adversely affects growth by lowering the rates of productivity growth and, to a smaller degree, physical and human capital accumulation. Finally, economic freedom and ethnic homogeneity are beneficial to growth, while democracy may have a small negative effect.
Download or read book Firm level Political Risk written by Tarek Alexander Hassan and published by . This book was released on 2017 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: We adapt simple tools from computational linguistics to construct a new measure of political risk faced by individual US firms: the share of their quarterly earnings conference calls that they devote to political risks. We validate our measure by showing that it correctly identifies calls containing extensive conversations on risks that are political in nature, that it varies intuitively over time and across sectors, and that it correlates with the firm's actions and stock market volatility in a manner that is highly indicative of political risk. Firms exposed to political risk retrench hiring and investment and actively lobby and donate to politicians. Interestingly, we find that the incidence of political risk across firms is far more heterogeneous and volatile than previously thought. The vast majority of the variation in our measure is at the firm-level rather than at the aggregate or sector-level, in the sense that it is neither captured by time fixed effects and the interaction of sector and time fixed effects, nor by heterogeneous exposure of individual firms to aggregate political risk. The dispersion of this firm-level political risk increases significantly at times with high aggregate political risk. Decomposing our measure of political risk by topic, we find that firms that devote more time to discussing risks associated with a given political topic tend to increase lobbying on that topic, but not on other topics, in the following quarter.
Download or read book Political Risk In The International Oil And Gas Industry written by Howard L Lax and published by Routledge. This book was released on 2019-07-11 with total page 180 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book, the author draws upon his training in political science and experience as an energy consultant at Atlantis, Inc. It explores the conflicting interests of host and firm, and discusses the way firms use political risk analyses leads us to the issue of managing political risk.
Download or read book Main types of political risks experienced by MNEs written by Svenja Martina Gnosa and published by GRIN Verlag. This book was released on 2011-07-19 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2011 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,3, University of St Andrews (School of Management), language: English, abstract: Identify the main types of political risk encountered by multinational corporations and discuss how these risks can be minimized. Introduction The controversy between the Kazak government and the Italian oil company ENI about the exploitation of Kashagan ́s oil fields is only one out of many cases, in which political violence acts or governmental decisions threatened foreign investments of a multinational enterprise (MNE). In April 2006, the Dacion and Jusepin oil fields, operated by ENI and the French company Total, were taken over by the Venezuelan government, because they rejected to change their business operations into joint ventures with the state-owned oil company PDVSA (Ferrari and Rolfini 2008). Stated by Kesternich and Schnitzer (2009) some recent empirical studies identified that for MNEs political risk is one of the most important factors when considering a foreign investment. Foreign investments nowadays seem to be even more risky in terms of pollution that result in natural catastrophes such as caused by BP (Heller 2011), cultural conflicts or political disturbances for which Lybia (Yang 2011) represents a recent example and an increasing social disparity (Bloch, Koepplinger and Wolfrum 2007) [...]
Download or read book State Capture Political Risks and International Business written by Johannes Leitner and published by Routledge. This book was released on 2016-11-25 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the OECD-area states provide security business to be conducted through a legal-institutional framework where state institutions, working in a legal-rational, predictable and effective manner, are often taken for granted. Worldwide, however the situation is very different. Private actors seize public institutions and processes accumulating ever more power and private wealth by systematically abusing, side-stepping, ignoring and tailoring formal institutions to fit their interests. Such forms of ‘state capture’ are associated with specific political risks international businesses are confronted with when operating in these countries, such as institutional ambiguity, systematic favouritism and systemic corruption. This edited volume covers state capture, political risks and international business from the perspectives of Political Science and International Business Studies. Uniting theoretical approaches and empirical insights, it examines Azerbaijan, Armenia, Georgia, Ukraine, Moldova, Romania, Bulgaria and Turkey. Each chapter deals with country specific forms of state capture and the associated political risks bridging the gap between political analysis and business related impacts.
Download or read book Assessing Corporate Political Risk written by David M. Raddock and published by Rowman & Littlefield Publishers. This book was released on 1986 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: This story is the diary of my twenties. I explored life, myself, and my desires while attempting to relate to the world around me. As I journeyed, strange things started happening. I experienced certain metaphysical phenomena or psychic abilities that made me wonder if I had a newfound gift, or if it was my childlike imagination reappearing. I seemed to be on a sort of mythological adventure, similar to the tales I'd used to write as a child. Once I'd decided to follow the signs, I discovered a newfound and mysterious faith. Life started giving me the answers I was asking for once I decided to pay attention.Bill Moyers interviewed myth master Joseph Campbell about mythology and its importance today: "Don't you sometimes think, as you consider these stories, that you are drowning in other people's dreams?" Moyers asked. "I don't listen to other people's dreams," Campbell responded. "But all of these myths are other people's dreams," Moyers said. "Oh, no, they're not. They are the world's dreams. They are archetypal dreams and deal with great human problems. I know when I come to one of these thresholds now. The myth tells me about it, how to respond to certain crises of disappointment or delight or failure or success. The myths tell me where I am," Campbell said.It is my goal to inspire others and myself to live a life of love, passion, and vitality while embracing all of the aspects of what it means to be human.
Download or read book Theory and Practice in Political Risk Analysis written by Association of Political Risk Analysts (U.S.). Conference and published by . This book was released on 1983 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Political Risk Assessment written by Llewellyn D. Howell and published by . This book was released on 2001 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Business Guide to Political Risk for International Decisions written by and published by . This book was released on 2004 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Measuring Political Risk written by Charlotte H. Brink and published by Routledge. This book was released on 2017-03-02 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: Offering a fresh, transparent approach encompassing new material, this invigorating volume measures political risk - for instance the risk that foreign investment might face in any country. It also demonstrates how progress or regress made in good governance initiatives as conditionalities to aid can be assessed. Governments can monitor their own policy environment(s), and take remedial action if necessary. The methodology allows for measurement of previously un-quantified 'soft' factors that add to the risks foreign investors might face, demonstrating why these factors are of importance to both risk assertive and risk averse investors. Features include: - 103 contextualized, measurable risk factors and their 411 risk factor indicators. - Guidelines to using these factors in order to perform generic macro analyses, or micro, client/project/industry-specific analyses. - Explanation of the methodology with which to comprehensively measure the probability of risk occurring in any macro or micro investment climate.
Download or read book Geopolitical Risk on Stock Returns Evidence from Inter Korea Geopolitics written by Seungho Jung and published by International Monetary Fund. This book was released on 2021-10-22 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate how corporate stock returns respond to geopolitical risk in the case of South Korea, which has experienced large and unpredictable geopolitical swings that originate from North Korea. To do so, a monthly index of geopolitical risk from North Korea (the GPRNK index) is constructed using automated keyword searches in South Korean media. The GPRNK index, designed to capture both upside and downside risk, corroborates that geopolitical risk sharply increases with the occurrence of nuclear tests, missile launches, or military confrontations, and decreases significantly around the times of summit meetings or multilateral talks. Using firm-level data, we find that heightened geopolitical risk reduces stock returns, and that the reductions in stock returns are greater especially for large firms, firms with a higher share of domestic investors, and for firms with a higher ratio of fixed assets to total assets. These results suggest that international portfolio diversification and investment irreversibility are important channels through which geopolitical risk affects stock returns.
