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Essay / Research Paper Abstract
This is a 15 page paper that provides an overview of political risks to investing in foreign markets. Various methods of analysis are explored, with an emphasis on the most critical factors. Bibliography lists 10 sources.
Page Count:
15 pages (~225 words per page)
File: KW60_KFpolrsk.doc
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Unformatted sample text from the term paper:
listed below. Citation styles constantly change, and these examples may not contain the most recent updates. Political Risks for International Investments , 1/2011 --for
more information on using this paper properly! By now, a decade into the 21st century, it is a matter of consensus that globalization, spurred on the rapid development of
computerized communications technologies, has changed the way in which business is conducted. Now, transactions take place much more quickly than ever before, and a host of new customers are accessible
through online sales venues. This is seen not just within domestic national markets, as demonstrated during the 1990s dot-com boom, but also on the international stage, where globalization and increased
communication has facilitated a marked increase in international trade, as well as international businesses directly investing in foreign economies which promise lucrative opportunities for unrestricted and profitable growth. While international
expansion has long been carried out by major corporations, the number of potential international markets has dramatically increased in the 21st century, particularly in areas such as Southeast Asia and
South America, where trends towards free trade agreements have made investments all the more appealing for foreign entrepreneurs. While an assessment of economic conditions may make for an attractive investment
prospect, however, there are other realities to consider. Too often, United States investors who are only accustomed to conducting business within the comparatively well-policed and regulated economy of that country
are blind to political threats that are faced by foreign investments in countries where the political landscape is less stable. In other words, even financially sound investments may be derailed
by unaccounted for political risks. Ergo, it is vital for international business to find a way to determine the relative political stability of foreign countries before making direct investments into
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