BU491 Chapter Notes - Chapter 2: Ian Bremmer, Offshoring
Document Summary
To help way dangers against opportunities, companies with foreign ventures must consult economic risk analysts. International markets are more interconnected then ever before. The usa is making the world a more volatile place. The offshoring trend is growing (shifting operations to where labour is cheap) The world is increasingly dependent on energy from states. Economic risk analysis vs political risk analysis where there is high political volatility: economic risk analysis: can a country pay its debt, political risk analysis: will a country pay its debt. Can tell you information that economics can"t. Stability is the unit of measure for political risk. Stability is determined by 2 things: a political leaders capability to implement the policies they want even amidst shocks and their ability to avoid generating shocks of their own. Shocks don"t necessarily mean political instability if the country and polecat system is equipped to handle them. Openness: information is able to flow freely, people can express themselves.
