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Explain Political Risk and Its Three Main Classifications

question 14

Essay

Explain political risk and its three main classifications.How can political risk be incorporated in the decision making process when firms decide on whether to invest in foreign project or not?


Definitions:

Planned Change

Refers to intentional efforts to improve a system, process, or organization through deliberate actions and strategies.

Participation And Involvement

The act of taking part or engaging in something, often referring to the degree to which individuals contribute to and influence group or organizational activities.

Employee Resistance

Opposition or pushback from employees against changes or policies implemented by management, often due to fear of the unknown or loss of control.

Overcome

To successfully deal with or gain control over something challenging, such as an obstacle or difficulty.

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