How important is managing political risk in the international business context?
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ABSTRACT How important is managing political risk in the international business context? Due to the global context in which business is conducted today, political risk along with financial and economical risk is relevant in any decision making of starting a business or investing overseas. However I will focus mainly in political risk by identifying the ideas and major key points that literature has. Next I will analyse and compare the key issues found in the literature according to the idea of managing political risk and finally I will concluded by explaining the diverse forms of managing political risk according to the type of investment or entrepreneurship. INTRODUCTION Political Risk is undoubtedly one of the key factors analyse by any company when starting business or investing overseas and jointly with economic and financial risk it creates what is known as country risk. "Country risk analysis rests on the fundamental premise that growing imbalances...

