Political Risk and the International Business Environment
An international company operates by committing resources to subsidiaries, each of which is necessarily subject to the jurisdiction of the host country. It follows from this that the attitude and behaviour of the authorities in the host country to foreign investments is an important factor in determining the profitability of an existing or new investment. It also follows that potential changes in existing attitudes may have considerable implications for the survival and profitability of the subsidiary, provided they can be predicted with any reliability.
KeywordsCash Flow Host Country Foreign Investment International Business Parent Company
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