Navigating Political Risks in Multinational Enterprises
Classified in Other subjects
Written on in English with a size of 2.28 KB
Political Risks in Multinational Enterprises
Political risks can be classified on three levels:
- Firm-specific risks: Also known as micro risks, these affect the MNE at the project or corporate level.
- Country-specific risks: Also known as macro risks, these also affect the MNE at the project or corporate level but originate at the country level.
- Global-specific risks: These affect the MNE at the project or corporate level but originate at the global level.
Firm-Specific Risks: Governance Risk
The main firm-specific risk is governance risk, which is the ability to exercise control over the MNE as a whole, globally, and within a specific country’s legal and political environment on the individual subsidiary level. The most important type of governance... Continue reading "Navigating Political Risks in Multinational Enterprises" »