Political Risk Management and Trade Deficit as an Advantage

Political Risks
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Political Risk Management
Political risk management should be an active strategy for most firms, especially multinationals. Political risk management is complex as there is no standard or systemic way of sensing critical risks. Hence, enterprises and business leaders are left to maintain engagements with political actors. Understanding that transnational, national, or societal factors trigger political risks, how they impact businesses varies. Moreover, there is little guidance or comprehensive systems on managing political risk; hence business leaders pursue a proactive approach by engaging political actors.
Political risk encompasses a complex web of factors that significantly affect an organization in numerous ways. The sales, research activities, general operations, financial resources, regulatory framework, and security are like...