Coping With Political and Economic Risks


Diversification in global trading benefits international business investments, especially in emerging markets, which have become a prominent feature of the financial globalization sweeping the world over the last decade. Whether conducting business or investing in emerging markets, corporations and investors are always exposed to political environments that are not typically present in advanced economies.

The risk of major violence is greatest when high levels of stress combine with weak and illegitimate national institutions. Emerging nations are vulnerable when their institutions are unable to protect their citizens from abuse, or to provide equitable access to justice and economic ...

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