girl
slogan
arrow
add phones phones
nav_arrow
Essay Editing
Essay Tips
Essay Writing Samples
Ideas for Essays
Plagiarism Free Essays
Writing Essays
Over 300 words/page
galka Double-spaced
galka Text aligned left
galka One-inch margins
galka 12 point font size
galka You choose font face
bottom
chat
Reasons why to choose us
  • US registered company
  • Over 1500 certified writers
  • Any topic at any academic level
  • Up to date sources
  • Life time discounts
  • 100 000 prewritten essays & Plagiarism report as FREE Extras
  • Personal account
  • Direct communication with the writer
  • 24/7 Customer support
  • Delivery from 6 hours
accept people
medal14
Essay Samples > Political > Political risks
← Contribution GainPolitical Vs Moral Issues →
Live Chat

Political risks

Buy custom Political risks essay

Every  country  has  government regulations  that  govern  the  political  climate  of  the  country.  Political  risk  arises  when  the  developmental  aspirations  of  a  host  country  are  inconsistent  with  the  operating  conditions  of  a  foreign  investor. This in  turn  refers  to  the difficulties of  businesses  and  governments  may  hinder  and the effects are  political  decisions.  Political  risks  may  in  turn change   the  probability  of  achieving  a  business  objective  due  to  change  in  the  climate.

A  political  risk  however  can  be  managed  with  reasoned  foresight  and  investment;  “Political  risk  analyst  have  to  be  able  to  recognize  signs  that  can  act  as  clues  to  situations  in  which  risks  to  an  investment  can  occur, (measuring  Political  risks:  risks  to  foreign  investment  By  Charlotte  H.  Brink)”  and  that  is  why  it  is  important  for  we  at  Axtem  to  focus  on  the  political  risks  that  may  be  involved  in  the  developing  nation  where  we would  wish  to  establish  a  factory  and  a customer  care  service  center  in  order  to  take  advantage  of  a less  expensive  labor  force.

According  to  Harms, he  suggests  that  some  governments  may  introduce  political  risks  in  the  form  of  a  tax  that  governments  may  impose  the  returns  on  foreign  owned  capital.  This  may  be  one  of  the hindering  factors  since  some  countries  may  be  wanting  to  harness  full  profits  for  themselves  and  hence  the  political  body  in  charge  would  try  to  make  it  inflexible for foreign investors who would  want  to  repatriate  their  profits.  This  may  be  one  of  the sources  of political  risks  that  we may  have  a  great  challenge  in.

Another  source  of  political  risks  may  be  caused by government decisions on  discriminatory  measures  that  target  foreign  investors  but  does  not  directly  affect  the  incomes  of  domestic  residents. this  fact  somewhat  relates   to  the  government  of  the  particular  state  in question  not  wanting  foreign  investors  to  repatriate  profits  to  their  home  country  and instead  encourage  the particular  earnings   to  circulate  in  the economy  of  the country  in question  and  hence  boost  their  economy.  In  a developing  country,  chances  of  their  economic  power  improving  due  to  these  foreign  investments  is high  and hence  it is only  expected   that  they  would  try  and create  a  political  environment  that  would  ensure  they reap  maximum  benefits  from  the  particular  investment.

Political  risks  analysis  can  also  be  said  to have  been  caused  by  unethical  business  practices  of  the  investors  such  may  be  scenarios  where there  have  been  tax  evasions, poor  working  conditions,  and  interference  in  domestic  politics  of  the host  country.  All these  factors  may create  a lot  of  tension  between the  investors  and  the  hosts  hence  leading  to creation  of  an unfriendly  political  environment.      

When  it  comes  to  distributive  political  analysis,  then  it  becomes  possible  to split  the  risks  into  parts,  this  makes  it  easier  for  investors  to  deal  with certain  calamities  in  the  political arena  that  may  come  their  way.  The distributive  property  can be used  the  same  way as  it  is used  in  simple  arithmetic  to make  a political  environment  easier  for  an investor  to deal  in,  let’s  say  by  focusing  on  individual  political  factors  then  it is  possible  to see  the  implications  of  each  factor  separately  as  an  entity  and then  combine  these  in  order to  be  able  to  have  better  scope  as  well  as  control  of  the  market.

A  catastrophe on  the  other  hand  is  thought  by  many  as particular  large  event  that may result to sudden  change.  However,  a  catastrophic  political  risk  does  not  necessarily  occur  in one  threshold,  it  is  a  gradual  accumulation  of  many  small  incidences  that  lead  to  the  same  scale  or damage. These events would only be recognized after the losses have accumulated.   Catastrophic  risks  can  mainly  be  generated  in  the  macro  environment  since  there  are very  numerous  issues  that  draw closer  into  play  in the general political environment:  sovereign  credit  defaults, government  currency  actions, regulatory  changes, endemic  corruption,  government  composition  changes and  war  declarations  .  According  to  Kobrin, “Ahar, concluded  that  the  assessment  of  political  risk  associated  with  investment  in  an unfamiliar  country  is  strongly  influenced  by  a  priori  assumptions. These  assumptions  are  subjective  and  general;  they  are  based  on  a  general  image  of  a  specific  country,  of  a  whole  continent  or  less developed  countries  as  a  whole,  or  even  foreign  countries  in  general….”. 

In  a developing  country, there  is  a  higher  likelihood  to  be faced  by  a  catastrophic  political  risks,  since  in this  countries, there  are  hardly  available  resources  to  keep  check  of  what  is really  happening majorly  in  the  country. You  will find  that  uncertainty  and  political  risks  are factors  that  are  inevitable  in these countries  and  so one  can  only  assume  the worst  of  situations  before  venturing  to  invest  in  the  area. 

Considering  the  interest  of Axtem Inc  to  want  to  invest  in  a developing  market  then  it is necessary  that  the political  climate  of  the  country  that  the company  may  wish  to invest  in  be  looked  into  as  well  as  the logistics  and  feasibility    being  able  to  fetch  maximum  profit  despite  the political risks  involved.

Buy custom Political risks essay

Buy essayHesitating

Related essays

  1. Political Vs Moral Issues
  2. Common Elements Separate State and Federal Constitutions
  3. Contribution Gain
  4. Political History of the United States from 1963-2000
get online helpBuy Essay
Email:
Password:
details
Time left: 4 days 19:44:26
arrow Essay in 11+ days for $12.99/page
arrow Essay in 7-10 days for $13.99/page
arrow Essay in 4-6 days for $14.99/page
arrow Essay in 3 days for $15.99/page
arrow Essay in 48 hrs for $17.99/page
arrow Essay in 24 hrs for $21.99/page
arrow Essay in 12 hrs for $26.99/page
arrow Essay in 6 hrs for $32.99/page
  more »  

"The paper you wrote for me really pays off... I do not have to rewrite it or hire another service to edit it. It is absolutely perfect"

more »  
Rekindling the Platonic Years Through Plato Essays
Writing Evaluation Essay
Writing a Nice French Essay
Writing a Narrative Essay
Putting up a Good Academic Essay
Writing an Algebra Essay
Writing a Good College Entrance Essay
Writing a Dental School Essay