Advertisement

Political Risk and the International Business Environment

  • Douglas Wood
  • James Byrne

Abstract

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.

Keywords

Cash Flow Host Country Foreign Investment International Business Parent Company 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Notes

  1. 3.
    M. R. Derby, ‘Three and a half million US employees have been mislaid: or an explanation of unemployment 1934–41’, Journal of Political Economy, 84 (1976), 1–16.CrossRefGoogle Scholar
  2. 4.
    S. J. Kobrin, ‘The environmental determinants of foreign direct manufacturing investment: an ex-post empirical analysis’, Journal of International Business Studies (Autumn/Winter 1976) 29–42.Google Scholar
  3. R. T. Green and W. H. Cunningham, ‘The determinants of US foreign investment: an empirical examination’, Management International Review, 15 (1975), 113–20.Google Scholar
  4. 6.
    R. Stobaugh, Jr. ‘How to analyse foreign investment climates’, Harvard Business Review (September—October 1969).Google Scholar
  5. 7.
    S. H. Robock, ‘Political risk: identification and assessment’ Columbia Journal of World Business (July—August 1971), 6–20.Google Scholar
  6. 9.
    James W. Vaupel and Joan P. Curhan; in ‘The world’s multinational enterprises’ (Geneva: CEI 1974) provide extensive (but often ill-defined) data on expropriation experience by activity and by location.Google Scholar
  7. 13.
    H. Levy and M. Sarnat, ‘International diversification of investment portfolios’, American Economic Review, 60 (1970), 673.Google Scholar

Copyright information

© Douglas Wood and James Byrne 1981

Authors and Affiliations

  • Douglas Wood
    • 1
  • James Byrne
    • 1
  1. 1.International Centre for Banking and FinanceManchester Business SchoolUK

Personalised recommendations