Essays on Political Risk

The Corn Laws were laws passed by the British Parliament in 1815 to keep the prices of grain high so that British grain farmers would be favored in the market. England had different laws that affected the importation of grains dating back to the 12th century (The Editors of Encyclopædia Britannica), but it became a serious issue in the 1800s because of the costs of war; England had a rapidly expanding population and had a naval blockade imposed during the Napoleonic era that caused the price of grain to rise. The laws became a big issue between the ...

Abstract

Global firms such as Toy “R” Us Inc. have to content with several factors that shape their operations among them political, trade and economies, quality and safety as well as cultural factors that determine the uptake and performance of their brands in varied market segments. Each of the identified factors needs careful considerations if the multinationals are to make successful penetration into desired international markets. Understanding cultural values and norms is important since acceptance of any product is determined by the ability of the firm to understand consumption habits of foreign consumers. It is also appropriate to comply with ...

Domestic companies seek foreign expansion to expand their markets and even grow further to achieve their ambitions of becoming international companies. However, these domestic companies face various challenges such as foreign competition, political risk, and foreign exchange risks. There are many opportunities and benefits available when a domestic company chooses to expand its market internationally, but the company also need to take on some additional risks (Salamzadeh & Kawamorita Kesim, 2015). The company may face foreign competition from other similar companies; therefore, it is important for the enterprise to strategically evaluate the market demand in order to be able to ...

Introduction

Business growth requires the adoption of various corporate levels strategies such as diversification into new markets. With that, it is necessary to identify the most suitable market regarding market demand and policies. That is because the country’s productivity determines the living standards, hence, the demand while policies determine ease of doing business and the productivity level. In that view, this report presents a recommendation and analysis of the most suitable country for Apple to expand to for its iPhone brand. To achieve the objective, the report presents a summary of the country of choice followed by an overview ...

Corruption as a Political Risk in Business

The global economy has shown good signs of recovery from the previous recessions that have been witnessed by leading global economies of America, Russia, China and Japan. Despite this strong and healthy economy, there are emerging issues of vulnerability of the economy risks associated with foreign exchange transfer, political interference, legal and regulatory risks, supply chain disruption, political violence, sovereign non-payment, financial sector susceptibility, and the inability of local governments to provide stimulus. While the economic sector for both product and services continues to enjoy steady growth fueled by high levels of employment and consumption, the industries have been ...

A generation ago, Asia was a marginalized region, and the financial community was not well developed. Over the years, it has grown and today it is the center of the global economy. It is essentially the engine of the economic world. Ultimately, the growth of Asia translates to growth for the world as a whole. This economic growth has been made possible by the people and their leaders. The political aspect of a region plays a significant role in the economy since it is keen on setting up different legislative steps so as to ensure the growth of the ...

Opportunities and Risks of Investing in India

Background Information on Indian Business Environment In India, the political setup is governed by stable democratic environment. Eighty percent of its population belongs to the Hindu community. The economy has been posting a growth at a stable rate of seven percent. On an average, starting a new business consumes approximately twenty five to thirty days. Average tariff rate in India is seven percent. The government, when it comes to procurement, give enormous preferences and favours to local firms. Foreign participation is limited and the financial sector of India is dominated by state-owned institutions. Investment climate in India is trader ...

Question two

Totalitarianism Totalitarianism is a political structure whereby the state does not recognize the limitation of its authority from any sector and it monopolizes power hence regulating all aspects in its jurisdiction such as the public and the private perspectives. This kind of political system is characterized by some elements which are opposed to a democratic environment. Totalitarianism is associated with autocratic were nobody can resist the power and authority of the president since that is a criminal issue highly punishable by law (ppt.2).

Features of totalitarianism

Absolute military control is an aspect which is experienced in Totalitarian State whereby citizens are not ...

BUSINESS FINANCING

Introduction Business owners and managers seeking financing encounters an essential decision regarding choice of whether to borrow money or to make use new equity capital. Given that equity and debts have very varied characteristics, each of them has different effect on cash-flow, earnings, and taxes as well as on balance sheet. They also have different impacts on any company`s dilution, leverage as well as a host for other financial metrics by which companies are measured. Lastly, each business financing options presents a different kind of relationship in relation to the financing source. Thus, a company`s plan on ...

Global Risk Assessment: New Alcohol Beverage Venture

Fundamentally, risk assessment entails identification and analysis of potential hazards that may occur in an organization and their resultant effects. The occurrence of risks often results in disruption of normal operations and performance of the affected entity. Before the formulation of a risk assessment strategy, due considerations must be given to nature as well as the causing agents. Risk assessment is essential for the success of an organization. Identification of potential hazards helps in determining the necessary and effective measures to be used in controlling them. Besides, protection of employees and the entire business enterprise is a state requirement ...

Introduction:

Famous for its 15th century Inca site, Machu Picchu, situated 2,430 meters above sea level and the ancient geoglyphs, The Nazca Lines, Peru is the star performer in the South American Continent of 2014. The latest report published by the International Monetary Fund (IMF) described the macroeconomic performance of Peru as “exceptional”. Prominent and effective macroeconomic policies, determined structural reforms, increased foreign direct investments and diversified export basket have made Peru the most economically stable country in the continent ahead of Argentina, Chile, Paraguay, Uruguay, and the others. It is also the faster-growing nation in the region. The ...

Political risks apart from takeover of business can be related to taxation and currencies, licensing and wage and labor laws. These are the broad forms of political risks which can affect both the revenues as well as profitability of a company operating in foreign environment (Phung). Taxation policies can change drastically in a foreign country due to the economic and political environment of the country. This can affect the profit levels and the attractiveness of the products in local currency terms. Currency devaluation can also result in lower profits, loss of business and lower valuation of assets in the ...