Political risk is one of the different elements of country risk that a company must take into consideration when operating internationally. Political risk reflects the risk posed by the government of a country, including risks that the government will take action against your company (China v. Google), up to and including the risk of nationalization (Argentina v. YPF). Governments have the capacity to, in an unpredictable and ad hoc manner, change the rules governing a company's operations in a country. In the West, where political processes tend to be transparent, it is a lot easier to understand and measure political risk. Political risk, it should be noted, reflects actions taken on existing ventures, and not something like project approval. So Keystone XL is a pending decision, not a political risk. isk would be if Keystone is approved and then after it is started the next government moves to block the…...

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References

Erb, C., Harvey, C. & Viskanta, T. (2003). Political risk, economic risk and financial risk. Fuque School of Business. Retrieved December 9, 2014 from https://ciber.fuqua.duke.edu/~charvey/Teaching/CDROM_BA456_2003/Other_Harvey_Papers/P38_Political_risk_economic.pdf

Huff, E. (2013). India passes GMO labeling law, but some worry its provisions were poorly planned. Natural News. Retrieved December 9, 2014 from  http://www.naturalnews.com/039137_india_gmo_labeling_laws.html 

Jijakli, N. (2013). Country risk assessment: India. Credendo Group. Retrieved December 9, 2014 from  http://www.delcredereducroire.be/newsletter/en/cra/2013/cra-india-november-2013 

Sieg, L. (2009). Five political risks to watch in Japan. Reuters. Retrieved December 9, 2014 from  http://www.reuters.com/article/2009/11/02/us-japan-risks-factbox-idUSTRE5A111A20091102

N.D. PP. 1). Yet with the recent wave of anti-American protests can these statements be integrated into a compelling narrative for long-term investment? Specifically, the answer is derived from qualifying the political risk variables associated with respective nation-states.
Risk Variables

While a plethora of political risk models exist, there are definitive items which comprise their ability to predict relative political turbulence. These factors include:

The threat of war, social unrest, disorderly transfers of power, political violence, international disputes, regime changes, institutional ineffectiveness, quality of the bureaucracy, the transparency and fairness of the political system, and levels of corruption and crime. (Economist Intelligence Unit. N.D. PP. 1)

Returning to the Middle East and the unrest of the last 24 months, nation-states in the region have experienced these factors to some degree and have developed scenarios to provide some measure of political certainty. Yet the issue remains whether the dynamism of the Arab Nations uprising will…...

Fiji
Political risk is the risk that is associated with the political stability of a nation and the risk associated with political actions on the part of a nation's government. A decline in the economy of a nation because of a violent change in government falls under the category of political risk, as does the risk of nationalization or other adverse government action directed at the company. There is considerable political risk associated with doing business in a nation like Fiji, for example. There are a number of ways that firms seek to manage the political risk that they face when doing business overseas.

Because of the nature of political risk, the implications can be significant for business. The worst case scenarios could see the loss of the entire business, combined with risk to life and limb of the employees that work for the business. Even minor political risks could have significant…...

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Works Cited:

CIA World Factbook. (2011). Fiji. Central Intelligence Agency. Retrieved April 19, 2011 from  https://www.cia.gov/library/publications/the-world-factbook/geos/fj.html 

Fiji Times. (2008). Fiji rated a high political risk. Fiji Times Online. Retrieved April 19, 2011 from http://webcache.googleusercontent.com/search?q=cache:WAtbT2f3jdwJ:www.fijitimes.com/story.aspx%3Fid%3D81962+fiji+political+risk&cd=3&hl=en&ct=clnk&client=firefox-a&source=www.google.com

Hsu, T. (2010). Fiji Water to stop operating in Fiji. Los Angeles Times. Retrieved April 19, 2011 from  http://articles.latimes.com/2010/nov/30/business/la-fi-fiji-water-20101130 

IHS. (2009). Fiji plunged into political turmoil as government declares state of emergency. IHS Global Insight. Retrieved April 19, 2011 from  http://www.ihs.com/products/global-insight/industry-economic-report.aspx?id=106595628

Direct investment / Political risk
A distinction between the project and parent perspectives when capital budgeting in a global situation

There are two different viewpoints in capital budgeting known as project and parent. The project is a locally addressed perspective that is child to the parent. The parent is the main organization in which the projects financial and operating cash flows will be directed. The project perspective is very useful in local purposes. However, it is subordinated to the evaluation from the parent's viewpoints (Moffett, Stonehill & Eitemen, 2012). A project evaluation will guarantee cash returns based on the host-governments bonds. In case a project were to fail in receiving cash equal to the bond yield, a parent firm should buy host government bonds instead of investing in a risky project or investing somewhere else. Multinational firms should invest only if they can earn a risk-adjusted return greater than locally-based competitors can…...

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3. A contrast of the various factors that impact foreign direct investment

Foreign direct investment is an investment made by a company and/or entity that is based in one region into another company and/or entity based in another one. There are many things that differ from direct and indirect investments such as the portfolio flow (Moffett, Stonehill & Eitemen, 2012). Therefore, overseas institutions invest in equities listed on a nation's stock exchange. Entities that make direct investments will typically have significant degrees of influence and control over the company into which the investment is made. Nevertheless, the open economies that consist of well-trained workers and project good growth prospects will tend to attract a larger amount of foreign direct investment than the closed economies which are highly regulated economies. Determining the best method that a company will adopt may make its overseas investment encounter different depending on the circumstances of the economic environment.

Some examples would be to set up a subsidiary or associate company in the foreign country, by acquiring shares of an overseas company, through a merger, or joint venture. The regulated threshold for a FDI relationship (defined by the OECD) is at least 10% (Moffett, Stonehill & Eitemen, 2012). In other words, the foreign

Strategy to Mitigate Political iskHistorically, political risk has been linked to dictators who could suddenly seize foreign assets (like the way the US seized ussian assets following the start of the ussia-Ukraine conflict). However, today political can come from just about anywhere, including peoples use of cell phones, local officials, or lone wolf terrorists (ice & Zegart, 2018). The definition of political risk has thus evolved to mean the likelihood that a political action will have a significant impact on a business, either positively or negatively.This all began after the end of the Cold War, which ironically fostered a more unpredictable geopolitical environment. The open hostility of the Cold War went underground in a way, and seeped into various aspects of society so that political risk became less obvious but nonetheless present. On top of this, the evolution of supply chains increased companies\\\' vulnerability to disruptions.In response to this new…...

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ReferencesRana, N. P., Chatterjee, S., Dwivedi, Y. K., & Akter, S. (2022). Understanding dark side of artificial intelligence (AI) integrated business analytics: assessing firm’s operational inefficiency and competitiveness. European Journal of Information Systems, 31(3), 364-387.Rice, C., & Zegart, A. (2018). MANAGING 21ST-CENTURY POLITICAL RISK TODAY\\\\\\\\\\\\\\\'S THREATS ARE MORE COMPLICATED, BUT THE REMEDIES DON\\\\\\\\\\\\\\\'T HAVE TO BE. Harvard Business Review, 96(3), 130-138.

isks in Export Market
There is need for companies to develop a professional approach before venturing into the exporting business. The management of the company is supposed to be committed extremely as well as devoting time and money in commencing the campaigns of export. A company is supposed to be ready to face greater competition as well as more stringent rules and regulations concerning products and packaging due to the variance in rules to which or across which the company will be exporting.

In the process of exportation, there are a number of risks that the company will face. These elements of risks are encountered in every commercial transactions as well as the complexity of the environments that exporters operate in. The content of this paper will analyze risks that a company can face while entering the field of exporting as well as discussing the roles of intermediaries in the field of…...

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References

Aaby, N. & S. Slater. (1989). Management Influences on Export Performance: A Review of the Empirical Literature1978-88. International Marketing Review, 6: 7-26.

Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, (2007). "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17: 99-120.1997. Gaining and Sustaining Competitive Advantage. Reading, MA: Addison.

Cornelius Bothma (2012). Managing your export risk. EXPORTHELP. Retrieved April 13, 2012 from  http://www.exporthelp.co.za/modules/10_risk/intro.html

. Research Design Rationale

1. Question format: In order to allow the research study to become embedded in the field of economics, the research question will use an applied question format. The purpose of the study is to develop a predictive method regarding player choices in the Prisoner's dilemma. It will explore the association of risk and cooperation or defection in the Prisoner's

Dilemma.

2. Research design: The research will use a deductive approach where the theory will be presented and tested through the methodology. The research will use quantitative research methods, which are suited for research where the information can be reduced to a numerical format. This is the case in the proposed study as both risk tolerance and the decisions made in the Prisoner's Dilemma can be reduced to numerical data and standard statistical methods applied.

III. Data/Information from Previous research

A. Literature Review

The literature review for the study will be divided into…...

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Bibliography (Preliminary)

Agarwal, J. & Feils, D. (2007). Political Risk and the Internationalization of Firms: an Empirical

Study of Canadian-based Export and Fdi Firms. Canadian Journal of Administrative

Sciences. 24 (3): 165+. Questia Database.

Ansell, C. & Gash, a. (2008). Collaborative Governance in Theory and Practice. Journal of Public Administration Research and Theory. 18 (4): 543+. Questia Database.

isks of Trading and Investing:
Involving a Developing Country with a Developed Country's Business

Description of XYZ Corporation

It will be the assumption within this paper that the multinational corporation depicted resides within the United States, a developed country, while it is trying to generate business with Ecuador, a developing country. A multinational corporation is a corporation that operates by supervising or transports products or services to more than one country. XYZ Corporation is a competitive multinational corporation deeply interested in expanding its business to countries in which they have not already established business in. The company currently focuses on the manufacturing and the wholesale of products in the oil and petroleum industries. Most of XYZ Corporation's foreign entities are located in the Middle East. ecently, a member of the XYZ team has given vital information to corporate executives explaining that Ecuador has enormous oil and petroleum potential that could greatly benefit…...

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References

Carroll, A.B. (1991). The pyramid of corporate social responsibility: towards the moral management of organizational stakeholders-balancing economic, legal, and social responsibilities. Retrieved January 14, 2011 from  http://findarticles.com/p/articles/mi_m1038/is_n4_v34/ai_11000639/pg_2/ 

Ecuador.us. (2009, December 21). Ecuador economy, Ecuador exports, Ecuador business.

Retrieved January 15, 2010 from http://www.ecuador.us/business.htm

EconomyPoint.org. (2006). Rate of exchange regime. Retrieved January 13, 2011 from http://www.economypoint.org/r/rate-of-exchange-regime.html

As a means to gain access to several million people who live a estern lifestyle, South Africa can be a good country to enter, but as a growth story it is much less exciting. Only when the GDP per capita of black and mixed-race South Africans begins to grow rapidly will the country be a truly attractive one for most companies. Arguably, the Human Development Index is a better measure, because it can reflect the overall potential of a nation like South Africa, where the development of one segment of the population is more critical to the market's potential than GDP, which is driven by another segment of the population.
A fourth reason why average per-capita income is not always the best indicator of an emerging market's potential lies in the Gulf States. Many Gulf States have very high average GDP per capita figures, driven by oil revenues. The lifestyle…...

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Works Cited:

Gibson, K. (2002). A case for the family-owned conglomerate. McKinsey Quarterly. Retrieved October 18, 2012 from  http://www.mckinseyquarterly.com/A_case_for_the_family-owned_conglomerate_1238 

Rajwani, S. (2011). How should firms deal with political risk? Cranfield University. Retrieved October 18, 2012 from  http://www.som.cranfield.ac.uk/som/p16495/Think-Cranfield/2011/May-2011/How-Should-Firms-Deal-with-Political-Risk 

Sargeant, N. (2006). What risks do organizations face when engaging in international finance activities? Investopedia. Retrieved October 18, 2012 from  http://www.investopedia.com/ask/answers/06/internationalfinancerisks.asp#axzz29f2QIadw 

Tata.com (2012). Heritage. Tata Group. Retrieved October 18, 2012 from  http://www.tata.com/htm/heritage/HeritageOption1.html

risk that one needs to be concerned with when selling a franchise (and this is a general case, not only the case of Germany) is that the franchiser (that is, the person who buys the franchise) may not fulfill all his contractual obligations. These include a certain quality standard and a brand image of the mother company (the franchisor). This obviously may lead to the fact that the customers will associate with the mother company a certain level of quality that is less than that agreed upon and less that the one the company actually has in the country of origin. This can cause serious prejudice to the brand image. If we think of a classical case of franchising, McDonald's, a level of quality may include a certain degree of organization, in order to avoid long lines, a certain quality of the products (for example, the franchise contract foresees…...

isk Management Plan for Exxon Mobil
A risk management process is a systematic application of management policies for the purpose of identifying, analyzing, evaluating and mitigating any possible risks within an organization. The following paper focuses on formulation of risk management plan for Exxon Mobil, one of the world's most renowned oil and gas companies. The risks would be identified and selected applicable to this firm and after their evaluation, a risk treatment plan would be advised.

Establish the isk Context

Identifying the Context for isk Assessment

eviewing current organizational processes

Being in the gas and power marketing department of the company, there are certain risks applicable within my area of operation. In order to clearly determine those risks, first, a comprehensive look at Exxon Mobil's organizational processes along with a SWOT analysis is presented. The firm is dedicated to create and maintain an environmental policy that would protect the environment on long-term basis. It…...

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References

Bastian, B.L. & Tucci, C. (2010). An empirical investigation on the effects of political risk on technology strategies of firms, presented at Summer Conference 2010, London, 2010. London: Imperial College London Business School. Retrieved from http://www2.druid.dk/conferences/viewpaper.php?id=501908&cf=43

Exxon Mobil. (n.d.). About us: How we operate. Retrieved from  http://lubes.ExxonMobil.com/Lubes/about_how.aspx 

Green Peace. (2011). Risks and potential impacts of oil exploration in the Arctic. Retrieved from   / FinalArcticBriefing2011.pdfhttp://www.greenpeace.org/international/Global/international/publications/climate/2011 

Hirsch, A. (2011, June 17). Exxon Mobil accused of 'fraud' in Jacksonville gas spill trail. The Baltimore Sun. Retrieved from   county/bs-md-co-exxon-trial-closing-20110617-story.htmlhttp://www.baltimoresun.com/news/maryland/baltimore -

Fact 9:

Europe's more liberal drug policies are not the right model for America.

Fact 10:

Most non-violent drug users get treatment, not jail time. (Legalization, 2010).

Conclusion

There are no benefits for society in the legalization of marijuana. The money from the taxing of the marijuana will end up being use to regulate and enforce the dispensaries. The money to treat the addiction will be another source of lost revenues from the taxation.

Increased usage by underage teens will be the same as cigarettes and alcohol and will increase as the price drops as it did in the Dutch experiment. Kids will be introduced onto the drug culture that leads to the use of the harder narcotics as a result of the increased access to the marijuana. The benefits will be just moved from one area to other areas of criminalization.

eferences

DEA website. 2010. etrieved on May 10, 2010 from http://www.pbs.org/newshour/extra/features/jan-june01/drugs_marijuanaharm.html

"Feature: Hundreds of Los Angeles Medical…...

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References

DEA website. 2010. Retrieved on May 10, 2010 from  http://www.pbs.org/newshour/extra/features/jan-june01/drugs_marijuanaharm.html 

"Feature: Hundreds of Los Angeles Medical Marijuana Dispensaries Face Closure Under New Rules Passed by Council" 2010. Retrieved on May 10, 2010 from  http://stopthedrugwar.org/chronicle/618/los_angeles_medical_marijuana_dispensary_ordinance_approved 

Joffe, a. & Yancy, W. "Legalization of Marijuana: Potential Impact on Youth." 2004. PEDIATRICS Vol. 113 No. 6 June 2004, pp. e632-e638. Retrieved on May 10, 2010 from  http://pediatrics.aappublications.org/cgi/content/full/113/6/e632 

"Legalization- Arguments Pro and Con." 2010 Retrieved on May 10, 2010 from  http://www.libraryindex.com/pages/2395/Legalization-ARGUMENTS-PRO-CON.html

isk and Insurance Management
isk is believed to be a newly coined word of assurance (for example, Ewald, 1991: 198). One of the broadly shared suppositions regarding insurance is that it spins around an instrumental concept of risk. Possibility and the amount of influence make up a technical concept of hazard/risk and hazard administration is chiefly worried about reviewing these possibilities and influences (for an overview see Gratt, 1987). For instance, external profits of financial or political occurrences lay down thresholds for the availability of associated risk guesstimates or reckonings (Huber, 2002).

So, the range of the risk groups cannot be clarified by risk judgment single-handedly; peripheral circumstances that could be political, financial or inclusive of image, arts and manners, are also required to be taken into account. Therefore, if risks are not be present, per se, but are deliberately selected, we can go a step ahead and presume them to be…...

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References

Douglas, M. And Wildavsky, A. (1982) Risk and Culture. An Essay on the Selection of Technical and Environmental Dangers. Berkeley: University of California Press.

Evers, A. And Nowotny, H. (1987) Uber den Umgang mit Unsicherheit. Die Entdeckung der Gestaltbarkeit von Gesellschaft. Frankfurt / Main: Suhrkamp.

Ewald, F. (1991) 'Insurance and Risk' in Burchell, G., Gordon, C. And Miller, P. (eds.) The Foucault Effect: studies in governmentality . London: Harvester Wheatsheaf.

Gratt, L.B. (1987) 'Risk Analysis or Risk Assessment: a proposal for consistent definitions' in Covello, V. And Lave, L. (eds.) Uncertainty in Risk Assessment, Risk Management and Decision Making, Advances in Risk Analysis (4). New York: Plenum Press.

Administrative and political distance risk is most seen from the standpoint
of legal and financial institutions, the monetary systems and political
associations and the role of foreign governments in defining the barriers
to entry for foreign businesses. Geographic distance risks have more to do
with the physical distance and varying climates. The geographic distance
set of risks also capture the lack of potential infrastructure due to
remoteness. The economic distance risk assessments include the different
information or knowledge process workflows throughout a culture and the
blind-spots this causes for many companies in creating the strategies to
move into another company. There are many risks also present in the
economic distance of given foreign nation, emanating from the differences
in consumer incomes and wide variations in costs and quality of natural,
financial, and human resources.
In assessing the risks of global expansion, it is critical to consider the
use of analytical frameworks to organize and communicate the risks during
the strategic planning process. The many risks…...

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References:

Ghemawat (2001) - Distance Still Matters: The Hard Reality of Global

Expansion. Harvard Business Review. Pankaj Ghemawat. Harvard Business

School Press. Cambridge, MA September, 2001.

isk Management in Family Owned Businesses
A family business can be simply described as "any business in which a majority of the ownership or control lies within a family, and in which two or more family members are directly involved" (Bowman-Upton, 1991). In other words, it is a multifaceted, twofold structure consisting of the family and the business meaning that the involved members are both the part of a job system and of a family system (Bowman-Upton, 1991).

Most families seek stability, intimacy, a sense of community, and belonging through the family business (Hess, 2006). On the other hand, whenever family and business are mentioned together, a majority of people think of continuous conflict, competition and contention (Crenshaw, 2005). However, "successful family businesses do not let the family destroy the business or the business destroy the family" (Hess, 2006).

The family-owned businesses are the backbone of the world financial system. According to a…...

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References

Barrese, J., & Scordis, N. (2003). Corporate Risk Management. Review of Business, 24 (3), Retrieved August 17, 2012 from  http://www.questia.com/read/1G1-111508707/corporate-risk-management 

Bodine, S.W., Anthony, P., & Walker, P.L. (2001). A Road Map to Risk Management: CPAs Can Help Companies Manage Risk to Create Value. (Consulting). Journal of Accountancy, 192 (6), Retrieved August 17, 2012 from  http://www.questia.com/read/1G1-80750205/a-road-map-to-risk-management-cpas-can-help-companies 

Bowman-Upton, N. (1991). Transferring Management in the Family-Owned Business. Retrieved August 14, 2012 from http://archive.sba.gov/idc/groups/public/documents/sba_homepage/serv_sbp_exit.pdf

Caspar, C., Dias, A.K., & Elstrodt, H. (2010, January).The Five Attributes of Enduring Family Businesses. Retrieved August 15, 2012 from Downloads/McKinsey Quarterly - Jan 2010.pdfhttp://www.businessfamily.ca/cert_register_files/Web

Nestlé's Corporate-Level Strategies: Opposing Viewpoints

Nestlé, a global food and beverage company, has employed various corporate-level strategies to achieve growth and sustain its market dominance. While these strategies have been largely successful, there are opposing viewpoints on their long-term implications and effectiveness.

Viewpoint 1: Acquisition-Led Growth

Nestlé's aggressive acquisition strategy has been a key driver of its growth. It has acquired numerous companies, including Gerber, Dreyer's, and Kraft Heinz, to expand its portfolio and gain market share.

Supporting Arguments:

Acquisitions provide immediate access to new markets and distribution channels.
They allow Nestlé to diversify its revenue streams and reduce dependence on specific products or....

Understanding Financial Risk: A Key to Informed Investment Decisions

Financial risk is an inherent aspect of investing. It refers to the possibility of losing some or all of the invested capital due to adverse market conditions, economic downturns, or other unforeseen events. Comprehending the nature and extent of financial risk is crucial for individuals to make informed and responsible investment decisions that align with their financial goals and risk tolerance.

Assessing Risk Tolerance

The first step in making sound investment decisions is to assess one's risk tolerance. This involves evaluating how comfortable an individual is with the potential for losses. Risk tolerance is....

Investment management Risk Analysis Of Infosys
Infosys is a multinational corporation that provides business consulting, information technology, and outsourcing services. As an investment option, Infosys has been a popular choice for investors looking to diversify their portfolios and potentially benefit from the growing demand for technology solutions in the marketplace. However, like any investment, Infosys carries its own set of risks that must be carefully analyzed and managed.
One of the key risks associated with investing in Infosys is the volatility of the stock price. As a publicly traded company, Infosys' stock price is subject to fluctuations based on market conditions, interest....

Key Findings from Literature Review on Risk Analysis of Infosys Investments
1. Geopolitical and Economic Risks
Infosys faces geopolitical risks associated with its global operations, particularly in politically unstable regions.
Economic downturns and currency fluctuations can impact its revenue and profitability.
2. Competition and Market Risks
Intense competition from both domestic and international IT service providers poses a threat to Infosys's market share.
Emergence of new technologies and disruptive business models can disrupt its traditional offerings.
3. Operational Risks
System failures, data breaches, and project delays can lead to reputational damage and financial losses.
Dependence on a narrow range of clients and industries....