Political Risk - PowerPoint PPT Presentation

Loading...

PPT – Political Risk PowerPoint presentation | free to download - id: 126d4b-OTllO



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Political Risk

Description:

change in rules which lead to reallocation of resources. tax rules ... xenophobia. Asian economies. 6. Chapter 17 - Political Risk. Assessing Political risk ... – PowerPoint PPT presentation

Number of Views:51
Avg rating:3.0/5.0
Slides: 8
Provided by: apalas
Learn more at: http://classes.uleth.ca
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Political Risk


1
Political Risk
  • Chapter Sixteen
  • Eitman, Stonehill, Moffett

2
Political risk
  • change in rules which lead to reallocation of
    resources
  • tax rules
  • ownership rules/capital controls
  • restrictions of foreign ownership
  • exchange controls
  • change in political structure which portends
    reallocation of resources

3
Macro risks
  • expropriation
  • government seizure of property
  • valuation
  • book?? Market??
  • exchange rates??
  • time value of money
  • civil strife
  • investment in Yugoslavia, Russia??
  • antagonistic governments
  • for US Iran , Cuba ??

4
Micro risks - Government Policy Goals
  • employment policies
  • resource reallocation
  • taxes
  • transfers
  • trade policies
  • protectionism
  • balance of payments
  • exchange rate policy
  • economic development

5
Barriers
  • limitations to trade
  • quotas, embargoes, licensing, domestic content
  • administrative restrictions
  • fees, tariffs, deposit requirements, tax
    adjustments
  • non-economic discrimination
  • quality standards, environmental, health
  • direct government interference
  • procurement, export subsidies, domestic subsidies

6
Non-economic goal conflicts
  • economic emperialism
  • African economies
  • national security concerns
  • U.S. concern
  • corruption nepotism
  • South, Central America, Africa, Asia
  • xenophobia
  • Asian economies

7
Assessing Political risk
  • political stability
  • probability of change
  • direction change would take
  • firm specific
  • negotiating terms
  • operating strategies to mitigate risk
About PowerShow.com