ReviewEssays.com - Term Papers, Book Reports, Research Papers and College Essays
Search

Typology of Political Risk

Essay by   •  October 29, 2012  •  Essay  •  200 Words (1 Pages)  •  864 Views

Essay Preview: Typology of Political Risk

Report this essay

Typology of Political Risk

Firm-specific risks - directed at a particular company are rare. Government will nullify its contract with a given firm or that a terrorist group will target the firm's physical operations are firm-specific. It is easier to reduce the likelihood and impact of firm-specific risks by incorporating strong arbitration language into a contract or by enhancing onsite security to protect against terrorist attacks.

Country-specific risks - not directed at the firm but are countrywide are more common. Examples include a government's decision to forbid currency transfers or the outbreak of civil war in the country. Firms usually have little control over the impact of country-level political risks aside from stop operating in the country of question.

Government risks - Arise from the actions of a governmental authority, where that authority is used legally or not. Examples include a legitimately enacted tax hike or an extortion ring that is allowed to operate and is led by a local police chief may both be considered government risks.

Instability risks - Arise from political power struggles. Conflicts could be between members of a government fighting over succession or mass riots in response to deteriorating social conditions.

...

...

Only available on ReviewEssays.com
Citation Generator

(2012, 10). Typology of Political Risk. ReviewEssays.com. Retrieved 10, 2012, from https://www.reviewessays.com/essay/Typology-of-Political-Risk/55578.html

"Typology of Political Risk" ReviewEssays.com. 10 2012. 2012. 10 2012 <https://www.reviewessays.com/essay/Typology-of-Political-Risk/55578.html>.

"Typology of Political Risk." ReviewEssays.com. ReviewEssays.com, 10 2012. Web. 10 2012. <https://www.reviewessays.com/essay/Typology-of-Political-Risk/55578.html>.

"Typology of Political Risk." ReviewEssays.com. 10, 2012. Accessed 10, 2012. https://www.reviewessays.com/essay/Typology-of-Political-Risk/55578.html.