What are the dimensions of political risk in international business? 🔊
The dimensions of political risk in international business encompass several factors that can affect multinational operations. These include economic instability, regulatory changes, corruption, and political violence. Companies must assess the likelihood of government actions that could impact their investments, such as nationalization, changes in trade policies, or alterations in tax regulations. Furthermore, geopolitical tensions and shifts in public sentiment can lead to unpredictable risks. Understanding these dimensions is critical for businesses to develop effective risk management strategies and ensure long-term sustainability in foreign markets.
Equestions.com Team – Verified by subject-matter experts