Written By: Ian Bremmer
June: 2005
Summary
Company meanwhile fears
unpredictable change even as they seek profit. A freshly privatized industry in
turkey. Recently tendered oil blocks in Libya . Global investment decision
on economic data. Economic risk involve on countries per capita income, growth
&inflation. Political risk is influenced by the passage law & rise of
popular movement. All the factor that might political stabilizes or de
stabilizes. Risk depends upon the context of the investment decision.
Business active only in develop nation should
factor political risk in to the planning scenarios. Political risk analysis is
more subjective than its economic counterpart and demand that leaders grapple
not just with broad. Article also helps corporate leader become better
information about the myriad shifting influence on global investment. Business
strategist can minimize risk.
In fact historically some
of the business world’s best political risk analysis has com from Multinational
Corporation like Shell &AIG. International markets are most interconnected.
If china rapidly growing economy a soft landing & crashing into recession.
So the impact on India ,
Russia
& US. China ’s
political decision today will have dramatic long term effect on its market.
Business shifts some other countries where labor is cheap such as china.
Economic risk &
political risk analysis addressed two fundamentally different. Economic risk
analysis tells corporate leaders. It saw clear skies. Political analyst
produced a darker & move accurate. It has been able to detect the silver
lining in economist dark clouds. With emerging markets like china.
Political unstable
countries like Saudi Arabia
business leader are turning to political risk analysis to measure the impact of
politics. One tool for measuring & presenting stability data e.g.
incorporates 20 composite indicators of risk in emerging markets& scores
risk according to both their structural
& temporal component. Countries are ranked on a scale of zero a fail state
& scale fifty to hundred stable states.
A complete & accurate
picture of any countries risk requires analyst with strong reportorial skills,
timely, accurate data on a variety of social & political trends. Political
never stop moving & risk analyst must be able to follow a nation’s story as
it developed. Comparing single nation’s data points over time tell the analyst
whether that nation is become more stable or less.
Ref –Page, No
74
HBR
HBR
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