The Political Risk in the Foreign Investment Strategic Decisions

1995 ◽  
pp. 311-327
Author(s):  
Alain Chevalier ◽  
Georges Hirsch ◽  
Jyoti Gupta
Keyword(s):  
Foreign Investment ◽  
Political Risk ◽  
The Political ◽  
Strategic Decisions

scholarly journals Assessment of the Political Risk in a Country: a Practitioner’s View

2019 ◽  
Vol 20 (3) ◽  
pp. 407-427
Author(s):  
Carlos Gustavo Arrieta Padilla
Keyword(s):  
Risk Assessment ◽  
South America ◽  
Foreign Investment ◽  
Political Risk ◽  
General Motors ◽  
The Political ◽  
Negative Effects ◽  
Union Carbide ◽  
Legal Entities ◽  
Multilateral Treaties

Political risk is inherent to foreign investment. It stems from either the government's or the political regime's instability, or restrictive and compelling governmental policies. To cope with this risk, two complementary instruments are used: risk assessment and deterrent measures. Taking into consideration South America, the author explains how the political risk assessment is realized through risks indexes, public or corporate: each carries its own criteria as shown here by the analysis of General Motors and Union Carbide methods of assessment. The author then discusses the means available to the investor to forecast and minimize the negative effects of the actualization of a political risk. He identifies two main categories of deterrent measures: business oriented strategies carried out by the investor or legal techniques of protection. Among the latter, the author analyses the stabilization and internationalization clauses; the security offered by certain bilateral or multilateral treaties to foreign investment; the guarantees agreed upon by organizations such as the Multilateral Investment Guarantee Agency; the transfer of domicile of legal entities.

scholarly journals Bibliometric evaluation of research on political risks in construction projects

2021 ◽  
pp. 191-208 ◽  
Author(s):  
Chunling Wei ◽  
Xiaopeng Deng ◽  
Tengyuan Chang ◽  
Amin Mahmoudi ◽  
Safi Ullah
Keyword(s):  
Content Analysis ◽  
Construction Projects ◽  
Visual Analysis ◽  
Political Risk ◽  
The Political ◽  
Scientometric Analysis ◽  
Research Directions ◽  
International Construction ◽  
Risk Research ◽  
Research Hotspots

The current study aims to provide an overview of the research on political risk using the Web of Science（WoS）database as well as summarize research results and put forward some suggestions for research directions of political risk in international construction projects. It is the first time scientometric analysis of political risk research is executed. In this regard, the papers related to political risk in the WoS database have been retrieved and the literature is sorted out by visual and content analysis methods. Visual analysis is used to analyze the research overview, knowledge base, and research hotspots of this field. The content analysis method is adopted to expound the current research focus from three perspectives inducing the influence of political risk, risk assessment, and risk management measures. The results show that in the political risk context, the number of publications has experienced an increasing trend in recent years. Based on the existing literature on political risk for all companies, this overview provides some suggestions to address the political risk in international construction projects in the future. The results contribute to the scholars understanding of the research overview, research hotspots, and future research directions of political risk research in construction projects.

scholarly journals Features of Political Risk Management of Transnational Corporations in the Context of Economic Globalization

2021 ◽  
pp. 162-168
Author(s):  
Ye. Bolotina ◽  
◽  
O. Shubna ◽  
A. Borodai ◽  
N. Steshenko ◽  
...  
Keyword(s):  
Risk Management ◽  
Political Risk ◽  
Transnational Corporations ◽  
Mitigation Measures ◽  
The Political ◽  
Negative Consequences ◽  
Investment Activity ◽  
Political Risks ◽  
Degree Of Risk ◽  
Foreign Trade Turnover

The article considers the specifics of the functioning of TNCs, their current activities in the investment market. TNCs are currently one of the most important actors in international economic relations. The investment activity of transnational corporations has a direct impact on the balance of payments, production volumes, foreign trade turnover, employment, and the competitiveness of the host economy. The key features of political risk management of TNCs are identified and characterized. The political risks of TNCs are related to their interpretation, classification and methods. The means of reducing the degree of risk include: risk avoidance, retention, risk transfer. Ways to reduce the degree of risk include: diversification, acquisition of additional information, limitation, insurance, hedging. It has been proven that the main advantage of risk communications as an effective ancillary way to manage the political risks of TNCs at the state level, especially in the early stages of public policy making, is that it allows decision makers to better and timely inform stakeholders about risks. and to effectively exchange data between different parts of the public administration system, including effective mitigation measures. The main directions for TNC investment in 2018 are analyzed. The negative consequences of TNCs and ways to overcome them are identified.

scholarly journals Foreign Investment and State Conflicts in Africa

2017 ◽  
Vol 23 (3) ◽  
Author(s):  
Roudabeh Kishi ◽  
Giuseppe Maggio ◽  
Clionadh Raleigh
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Civil Liberties ◽  
The State ◽  
The Political ◽  
Political Environment ◽  
Internal Environment ◽  
State Behavior

AbstractRates of foreign direct investment (FDI) to Africa are increasing, yet little is known about how this will affect the political environment. One possibility, explored here, is that increasing levels of FDI within developing states will incentivize state conflict activity. Using an instrumental strategy, we show that in states with a low regard for civil liberties, or with unhealthy economies (i.e. states with a cash deficit), increased access to investment is associated with a higher number of conflict actions by the state. We argue that access to investment can push regimes into using violent strategies to secure their internal environment and to ensure their survival, specifically in their engaging in conflict against opposition and armed combatants. This underscores the need for extensive monitoring of state behavior following the receipt of investment, similar to the oversight of conditional aid.

International Investment, Political Risk, and Dispute Resolution

2020 ◽  
Author(s):  
Rubins Noah ◽  
Nektarios Papanastasiou Thomas ◽  
Kinsella N Stephan
Keyword(s):  
Foreign Investment ◽  
Political Risk ◽  
Legal Framework ◽  
International Investment ◽  
International Investment Law ◽  
Investment Protection ◽  
Political Risks ◽  
Theoretical Approaches ◽  
Previous Edition ◽  
Risk Insurance

This second edition explores the multi-layered legal framework for the protection of foreign investment against political risk. The chapters analyze some of the key issues surrounding this subject, such as structuring transactions to minimize political risk, political risk insurance, State responsibility, treaties protecting foreign investmentand international arbitration between States and investors. Since the previous edition, far more attention has been paid to some of these issues, in particular investor–State arbitration.All chapters have been revised to take into account the number of new arbitration awards that have come to light and the massive volume of commentary on the subject of international investment arbitration since the first edition. The authors have carefully considered the latest theoretical approaches to foreign investment protection and the most intellectually challenging awards issued in the intervening decade, as well as the most recent practical guidance on the procedural recourse available to investors who face political risks. The book is written to appeal to lawyers and non-lawyers alike. It is suitable as a primer for non-specialist practitioners seeking to familiarize themselves with international law pertaining to political risk. It is also suitable for students who intend to specialize in international investment law.

Political Risk, Reputation, and the Resource Curse

2011 ◽  
Vol 44 (6) ◽  
pp. 662-688 ◽  
Author(s):  
Nathan M. Jensen ◽  
Noel P. Johnston
Keyword(s):  
Natural Resource ◽  
Insurance Industry ◽  
Resource Curse ◽  
Political Risk ◽  
Positive Association ◽  
The Political ◽  
Data Set ◽  
Resource Wealth ◽  
Risk Insurance ◽  
Natural Resource Wealth

There is a growing literature on how natural resources affect both economic performance and political regimes. In this article the authors add to this literature by focusing on how natural resource wealth affects the incentives of governments to uphold contracts with foreign investors across all sectors. They argue that although all states suffer reputation costs from reneging on contracts, governments in natural-resource-dependent economies are less sensitive to these costs, leading to a greater probability of expropriation and contract disputes. Specifically, leaders weigh the benefits of reneging on contracts with investors against the reputation costs of openly violating agreements with firms. The authors’ theoretical model predicts a positive association between resource wealth and expropriation. Using a data set from the political risk insurance industry, the authors show that resource dependent economies have much higher levels of political risk.

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