MGCR 382 Lecture Notes - Lecture 5: Country Risk, Risk Management, Sub-Saharan Africa
23 Sep 2015
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Document Summary
More experienced managers perceive risks as similar across countries, with regulatory risk being the most important. When you want to go to another country: Too often leads to mechanical portfolio approach to evaluating threats and opportunities. May result in overlooking firm-specific threats and opportunities. When you are already in a foreign country and risks are emerging. Carrot/stick involves adding or withholding new investment in country. Most problematic factors in doing business around the world. Any firm contemplating entering a new market should acquire basic knowledge of that country, learning. What and how much information a firm needs to assess political risk will depend on the type of business it is and how long it is likely to be in the host country. The greater and longer-lived a firm"s investment, the broader its risk assessment should be. Political risk exists in every country, although the nature and importance of these risks vary.
