Strong core values will be essential to their success. An effective understanding of “political risk” can be effected through an appreciation of societal organization; specifically, the means by which the rules of law, or lack thereof, define the way in which a given region might be represented. Based upon the way in which human society has developed, political systems have come to define different ethnic, linguistic, religious, or cultural boundaries; acting as a means of coalescing disparate groups of individuals under a certain set of laws, regulations, expectations, and cultural norms. The range of political cultures is expansive, to say the least. Within the current world, there are examples of countries that have liberal democracies that practice the concept of democracy; as well as nations that are completely authoritarian dictatorships in which the will of the people has little to no relevance to the way in which the political system operates. The differentials and levels of nuance that exist within the current political systems around the globe force companies and decision makers within them not to form concrete understandings of political risk based upon a convenient model (Mitchell, 2011). Instead, political risk must be unique and determinant only to the region in question at any one given time. Political Considerations and Managing Political Risk in an Ever Evolving Global Marketplace.
Culp, S. (2012, August 27). Political Risk Cant Be Avoided, But It Can Be Managed - Forbes. Retrieved from http://www.forbes.com/sites/steveculp/2012/08/27/political-risk-cant-be-avoided-but-it-can-be-managed/
Lim, P. (2013, February 23). Investors Rediscover Risk-Taking Abroad - NYTimes.com. Retrieved from http://www.nytimes.com/2013/02/24/your-money/investors-rediscover-risk-taking-abroad.html?_r=0
Mitchell, T. (2011, September 1). Five Ways to Manage Overseas Business Risks - Businessweek. Retrieved from http://www.businessweek.com/management/five-ways-to-manage-overseas-business-risks-09012011.html
Rajwani, T. (2011, May 1). How Firms Should Deal With Political Risk. Retrieved from http://www.som.cranfield.ac.uk/som/p16495/Think-Cranfield/2011/May-2011/How-Should-Firms-Deal-with-Political-Risk
Saint Leo University. (2013). International business (Custom 2nd ed.). Upper Saddle River, NJ: Pearson
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