Search

Article Information


Political Risk Analysis and Direct Foreign Investment: Some Problems of Definition and Measurement
Sethi, S. Prakash, and K. A. N. Luther
28/2  (Winter 1986): 57-68

Research and analysis of political risk assessment in overseas areas is encumbered with serious definitional and methodological problems. These problems make any interpretive findings at best highly crude (and of limited applicability) and at worst irrelevant and subject to misinterpretation. In light of the nature of these problems, not much appears to be gained by introducing more sophisticated analytical techniques. A realistic approach to political risk analysis must take into account three sets of factors: the general sociopolitical international environment; the foreign and domestic policies of the home country of the multinational parent and those of the host country; and the relative bargaining strength of a particular multinational corporation based on its international investment strategy, technological lead, and investment exposure in a host country.

 

California Management Review

Berkeley-Haas's Premier Management Journal

Published at the University of California for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

Learn more
Follow Us