Case questions political risk

The first coup came in direct response to a majority Indian government headed by a Fijian with the support of the Indo-Fijian community, and all subsequent coups have come as an ethnic Fijian response to Indian gains in power.

An example of this might be the clothing company, which provides a handful of low-end jobs that could probably be replaced. Some political Case questions political risk can be insured against through international agencies or other government bodies.

The evaluation of the performance measures is very important for evaluation of the company and the projects that are undertaken by identification and measurement of the costs and benefits Should it survive Case questions political risk the challenges that for-profit By Albert Phung Updated February 8, — Most Indo-Fijians, having been on the islands for years or more, do not relate to other countries and have little desire to leave.

I need an urgent basis the solution of an assignment regarding business innovation and development Regulations can be set at all levels of government, including federal, state and local, as well as in other countries.

Faced with high taxes and political instability the company exited Fiji completely in Hsu, In a coup-prone country like Fiji, the latter strategy is probably the most effective one.

The firm contributes revenues and jobs to the government and country, while the country contributes the opportunity to do business to the firm. If the Fijian government relies on the business, then it has less leverage over the business, meaning that the business faces less political risk.

Thus, it is important for the firm to gain independent assessments of the political risk in a country. Macro risk refers to adverse actions that will affect all foreign firms, such as expropriation or insurrection, whereas micro risk refers to adverse actions that will only affect a certain industrial sector or business, such as corruption and prejudicial actions against companies from foreign countries.

There are a number of different business characteristics that impact on the political risk that the business faces. A decline in the economy of a nation because of a violent change in government falls under the category of political risk, as does the risk of nationalization or other adverse government action directed at the company.

What can a multinational company do to minimize exposure to political risk?

Multinational companies can go to one of the many organizations that specialize in selling political risk insurance and purchase a policy that would compensate them if an adverse event occurred. A tourist resort in Fiji could face a similar circumstance, should the government make that choice.

In addition, the dependence of the government on revenues from the business is also a factor. Adverse political actions can range from very detrimental, such as widespread destruction due to revolution, to those of a more financial nature, such as the creation of laws that prevent the movement of capital.

However, if the business is largely inconsequential to the government, then the business would have a higher degree of political risk.

Bargaining power relates to a number of factors, but boils down to how much each party needs the other. These include taxes, spending, regulation, currency valuation, trade tariffs, labor laws such as the minimum wage, and environmental regulations.2-Political Risk: Political risk can be defined as Political risk is a nature of.

Fiji Political Risk Is the Risk That&nbspCase Study

risk. confronted by. investors, corporations, and governments. It is the type of risk that can be unstated and achieved with coherent forethought and investment (Glenn, ).

Political risks are those associated with changes that occur to a country's policies governing businesses, as well as external factors that could affect businesses. A common example of political risk might be a country that unexpectedly raises corporate taxes for a specific industry.

For multinational companies, political risk refers to the risk that a host country will make political decisions that prove to have adverse effects. Case Questions Political Risk Case Questions- Political Risk and Dabhol Analyze the Case issues etc. and present the brief analysis in your report Along with providing detailed answers to the following questions.

With respect to political, energy, commodity, and credit risk, if a respondent indicated that her firm primarily faced material political risk from among these four categories, she answered just the political risk questions (and likewise for the other three categories).

Political risk is the risk of financial, Political risks are faced equally by investors in international businesses and investment fund portfolios. millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions.

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Case questions political risk
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